Public Berhad acquired 70% equity shares of Queen Berhad as on 31st May 2018 at a...

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Public Berhad acquired 70% equity shares of Queen Berhad as on 31st May 2018 at a cost of RM700,000. The following information is available from statement of financial position of Queen Berhad as on 31st May 2018. Accounts Non current assets Investments Current assets 10% debentures Current liabilities RM'000 1,200 550 700 900 500 The following revaluations have been agreed upon (not included in the above figures): Non current assets Investments Up by 20% Down by 10% Queen Berhad declared and paid dividend at 20% on its equity shares as on 31st May 2018. Public Berhad purchased the shares at RM2 per unit. Required:- Compute the amount of goodwill / bargain purchase attributable to the acquisition of shares in Queen Berhad. Public Berhad acquired 70% equity shares of Queen Berhad as on 31st May 2018 at a cost of RM700,000. The following information is available from statement of financial position of Queen Berhad as on 31st May 2018. Accounts Non current assets Investments Current assets 10% debentures Current liabilities RM'000 1,200 550 700 900 500 The following revaluations have been agreed upon (not included in the above figures): Non current assets Investments Up by 20% Down by 10% Queen Berhad declared and paid dividend at 20% on its equity shares as on 31st May 2018. Public Berhad purchased the shares at RM2 per unit. Required:- Compute the amount of goodwill / bargain purchase attributable to the acquisition of shares in Queen Berhad.

Answer rating: 100% (QA)

To compute the amount of goodwillbargain purchase attributable to the acquisition of shares in Queen ... View the full answer