Alpha Company acquired Beta Company on the first of July 2018 for $100 000 At the date of acquisition, Beta Company had the following assets and liabilities Carrying Amount $ Recoverable Amount $ Fair Value $ Assets Land 100 000 130 000 150 000 Machinery 50 000 30 000 40 000 Cash 20 000 Liabilities...

The calculation of goodwill involves comparing the fair value of the consideration transferred with ...

Alpha Company acquired Beta Company on the first of July 2018 for $100 000. At the date

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Alpha Company acquired Beta Company on the first of July 2018 for $100 000.

At the date of acquisition, Beta Company had the following assets and liabilities:

	Carrying Amount $	Recoverable Amount $	Fair Value $
Assets
Land	100 000	130 000	150 000
Machinery	50 000	30 000	40 000
Cash	20 000

Liabilities
Loan	105 000
Contingent Liabilities	80 000

Required

What is the amount (if any) of the goodwill on acquisition of the subsidiary, 1 July 2018?

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Financial Accounting and Reporting

ISBN: 978-0273744443

14th Edition

Authors: Barry Elliott, Jamie Elliott

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Posted Date: May 05, 2023 03:26 AM

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Alpha Company acquired Beta Company on the first of July 2018 for $100 000. At the date

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