Cruz obtained a 60% holding in the 100,000 1 shares of Tom on 1 January 2019...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Cruz obtained a 60% holding in the 100,000 £1 shares of Tom on 1 January 2019 when the retained earnings of Tom were £850,000. Consideration comprised £250,000 cash and £400,000 payable on 1 January 2020. Cruz has a cost of capital of 8% DF 0.926. Cruz measures non-controlling interest at fair value. The fair value of the non-controlling interest at 1 January 2019 was estimated to be £400,000. Calculate the amount of goodwill to be shown in the consolidated statement of financial position as at 31st December 2020 by filling in the blanks: Consideration is calculated as the total of cash £ Blank 1 plus deferred cash £ Blank 2. The amount of NCI at the acquisition date is £ Blank 3. Net assets at the acquisition date is £ Blank 4. Goodwill amount to be presented in the consolidated statement of financial position is £ Blank 5. Blank 1 Blank 2 Blank 3 Blank 4 Blank 5 Add your answer Add your answer Add your answer Add your answer Add your answer Cruz obtained a 60% holding in the 100,000 £1 shares of Tom on 1 January 2019 when the retained earnings of Tom were £850,000. Consideration comprised £250,000 cash and £400,000 payable on 1 January 2020. Cruz has a cost of capital of 8% DF 0.926. Cruz measures non-controlling interest at fair value. The fair value of the non-controlling interest at 1 January 2019 was estimated to be £400,000. Calculate the amount of goodwill to be shown in the consolidated statement of financial position as at 31st December 2020 by filling in the blanks: Consideration is calculated as the total of cash £ Blank 1 plus deferred cash £ Blank 2. The amount of NCI at the acquisition date is £ Blank 3. Net assets at the acquisition date is £ Blank 4. Goodwill amount to be presented in the consolidated statement of financial position is £ Blank 5. Blank 1 Blank 2 Blank 3 Blank 4 Blank 5 Add your answer Add your answer Add your answer Add your answer Add your answer
Expert Answer:
Answer rating: 100% (QA)
To calculate the blanks we can use the following steps 1 Calculate the total consideration paid by C... View the full answer
Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
Students also viewed these accounting questions
-
On 1 January 2019, Happyland Bhd acquired 80% of Wonderland Bhd equity shares when the retained earnings of Wonderland Bhd stood at RM6 million. The agreed consideration was RM30 million cash and a...
-
On December 31, Year 6, Ultra Software Limited purchased 70,000 common shares (70%) of a major competitor, Personal Program Corporation (PPC), at $30 per share. Several shareholders who were...
-
On 1 January 2019, JOHN acquired 80% of the equity share capital of WALKER. The consideration was satisfied by a share exchange of two shares in JOHN for every three acquired shares in WALKER. At the...
-
Pieman Products Ltd makes road trailers to the precise specifications of individual customers. The following are predicted to occur during the forthcoming year, which is about to start: All direct...
-
What are the meanings of the terms cash build and cash burn? How do we calculate net cash burn rates?
-
A "Note" is a written promise to pay a definite amount of money on a specific future date. Specific terminology is used to describe various attributes of a note. Match the following terms to their...
-
What benefits should entities expect from preparing sustainability reports?
-
Rianne Company produces a light fixture with the following unit cost: Direct materials ...... $2 Direct labor ......... 1 Variable overhead ..... 3 Fixed overhead ....... 2 Unit cost ......... $8 The...
-
6. For the given first order reaction 7. AB The half life of the reaction is 0.3010 min. The ration of the initial concentration of reactant to the concentration of reactant at time 2.0 min will be...
-
Prevosti Farms and Sugarhouse pays its employees according to their job classification. The following employees make up Sugarhouse's staff: Employee Number Name and Address Payroll information...
-
se M Im Inl Dr Se Ju Tr Ar Dr Why is an LLC an attractive form of business organization for many new companies? Pe Re Se W Because it is a relatively simple way of establishing and operating a...
-
A company has the following expense transactions in January: 1 ) A vendor performed $ 1 0 0 of services for you on Jan 1 0 and sent the invoice to you customer on Jan 2 0 . You paid the vendor on Jan...
-
1. How will the communication capabilities of the Internet impact the ability of business customers to receive feedback from customers? 2. Explain what promotion can do and what it cannot do. 3. How...
-
What is Treatment of Priority and "Unusual" Cross Border Claims? Explain.
-
Question 3 Scenario: XYZ Manufacturing Company Section B XYZ Manufacturing Company is a leading player in the consumer electronics industry. The company is known for its innovative products and has...
-
Consider projects A and B with the following cash flows: A Co -$ 44 C1 C2 C3 +$ 28 +$ 28 +$ 28 B -69 +38 +38 +38 a-1.What is the NPV of each project if the discount rate is 12% ? Note: Do not round...
-
What is Nike's vision, mission, and values? Nike's strategic intent is to be a company that "stands for something meaningful" what does this mean? What are the upsides and downsides of this kind...
-
Assume today is the 21st of February. Using the information below, FT Extract, answer the following questions (parts i and ii). You work for a US company that is due to receive 250 million in June...
-
What is done to record properly a transaction involving the issuance of a non-interest-bearing long-term note in exchange for property?
-
What is meant by the statement that the financial statements articulate ?
-
Mask SE has 30,000 shares of 10 par value ordinary shares authorized and 20,000 shares issued and outstanding. On August 15, 2019, Mask purchased 1,000 shares of treasury shares for 18 per share....
-
The codon change (Gly-12 to Val-12) in human H-ras that converts it to oncogenic H-ras has been associated with many types of cancers. For this reason, researchers would like to develop drugs to...
-
Outline the general strategy used in metagenomics.
-
You need to understand the approach described in question 3 in More Genetic TIPS before answering this question. A muscle-specific gene was cloned and then subjected to promoter bashing. As shown...
Study smarter with the SolutionInn App