Smith acquired 80% of Jones for cash of 2,200. At the time of acquisition net assets...

 

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Smith acquired 80% of Jones for cash of £2,200. At the time of acquisition net assets in of Jones had fair value of £2,000 but book value of £1,200. Current balance sheets are as follows: - Required: For the Smith group Investment in B Other net assets Share capital £1 shares Retained earnings Profit/Loss a) Group Balance Sheet, b) Group Income Statement, and c) Explain the rationale for group accounts. For controlling/non-controlling interests calculate d) Return on Equity, and e) Earnings per Share Smith £2,200 2,800 5,000 £4,000 800 200 5,000 Jones 1500 1500 1000 400 100 1500 Smith acquired 80% of Jones for cash of £2,200. At the time of acquisition net assets in of Jones had fair value of £2,000 but book value of £1,200. Current balance sheets are as follows: - Required: For the Smith group Investment in B Other net assets Share capital £1 shares Retained earnings Profit/Loss a) Group Balance Sheet, b) Group Income Statement, and c) Explain the rationale for group accounts. For controlling/non-controlling interests calculate d) Return on Equity, and e) Earnings per Share Smith £2,200 2,800 5,000 £4,000 800 200 5,000 Jones 1500 1500 1000 400 100 1500

Answer rating: 100% (QA)

Smita acquired 80 as Jover for Cat 2200 ... View the full answer