Patel Company Ltd. purchased all the outstanding ordinary shares of Singh Company Ltd. on December 31, 2017.
Question:
Patel used current assets of ¬700,000 to acquire the shares of Singh. The excess of this purchase price over the book value of Patel's net assets is determined to be attributable ¬25,000 to Singh's plant and equipment and the remainder to goodwill.
Instructions
(a) Prepare the entry for Patel Company's acquisition of Singh Company shares.
(b) Prepare a consolidated worksheet at December 31, 2017.
(c) Prepare a consolidated statement of financial position at December 31, 2017.
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Related Book For
Financial Accounting
ISBN: 978-1118978085
IFRS 3rd edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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