Coronado Inc acquired 122,000 common shares, which is 25% of the outstanding common shares, of Tahiti Ltd.
Question:
Coronado Inc acquired 122,000 common shares, which is 25% of the outstanding common shares, of Tahiti Ltd. on January 1, 2017 for $774,700. At the time of purchase, Tahiti Ltd. depreciable assets were undervalued by $39,240. The depreciable assets had a remaining useful life of 9 years with no salvage value. Tahiti Ltd. declared and paid a cash dividend of $0.33 per share on July 31, 2017. Tahiti Ltd. reported $1.2 million as net income on December 31, 2017 for the year ending on this date. Assuming that Coronado Inc. is in a position to exercise significant influence over Tahiti Ltd, and that Coronado follows IFRS.
Prepare all the journal entries for 2017 in the books of Coronado Inc. relating to above transactions
Introduction To Probability And Statistics
ISBN: 9781133103752
14th Edition
Authors: William Mendenhall, Robert Beaver, Barbara Beaver