Train Ltd acquired 60% of Engine Ltd for a cost of $345,600, when the equity of Engine
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Question:
Train Ltd acquired 60% of Engine Ltd for a cost of $345,600, when the equity of Engine Ltd consisted of:
Share Capital | $80,000 |
General Reserve | $4,000 |
Retained Earnings | $4,000 |
All the identifiable assets and liabilities of Engine Ltd were recorded at fair value except for the following:
Carrying Amount | Fair Value | |
Equipment (cost $500,000) | $360,000 | $400,000 |
Inventory | $80,000 | $100,000 |
Required:
Prepare the journal entries for the pre-acquisition stage (i.e., Stage 1) of recording the Non-Controlling Interest (NCI) using the partial goodwill method.
Related Book For
Physics
ISBN: 978-0077339685
2nd edition
Authors: Alan Giambattista, Betty Richardson, Robert Richardson
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