Question: The nancial statements of JEZ Lt e and its subsidiary Fornax

The financial statements of JEZ Ltée. and its subsidiary, Fornax Ltée., at December 31, 2013, contained the following information:
JEZ had acquired all the share capital of Fornax on January 1, 2010, for $15,000 when the equity of Fornax consisted of:
Share capital—10,000 shares.......... $10,000
Retained earnings............... 3,500
At the acquisition date by JEZ, Fornax’s non-monetary assets consisted of:
The plant had a further six-year life. All the inventory was sold by December 31, 2010. The land was sold in January 2013 for $6,000.
The tax rate is 40%.
Prepare the consolidated financial statements for the year ended December 31, 2013.

View Solution:

Sale on SolutionInn
  • CreatedJune 09, 2015
  • Files Included
Post your question