On 1/1/2018, JDE acquired 55% of BIM in return for paying 3,000,000 dinars in cash, in...

 

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On 1/1/2018, JDE acquired 55% of BIM in return for paying 3,000,000 dinars in cash, in addition to 500,000 shares of BIM. Note that the nominal value of the share is 1 dinars and the market value is 14.9 dinars per share. On the date of acquisition, the book vatue of BIM was 169,700,000 dinars, distributed as follows: 6000000 10870000 100000 Ordinary share capital Additional capital, ordinary shares Retained earnings While the market value of the company did not show any difference from the book value, except for the following assets: Market valoe Book value 255000 3400000 3300000 1700000 2700000 Lands Buildings (7 years) Equipment (5 years) 3700000 On December 31, 2018, BIM recorded a net income of 7,950,000 dinars and announced a dividend of 3,000,000 dinars for the same year. Required: -If you know that JDE uses the equity method to record its investments and assuming that any increase in the purchase price (CT) against the market value of the acquired assets and liabilities is due to goodwill registered in the name of BIM, prepare Investment journal entries for the year 2018 TFire table On 1/1/2018, JDE acquired 55% of BIM in return for paying 3,000,000 dinars in cash, in addition to 500,000 shares of BIM. Note that the nominal value of the share is 1 dinars and the market value is 14.9 dinars per share. On the date of acquisition, the book vatue of BIM was 169,700,000 dinars, distributed as follows: 6000000 10870000 100000 Ordinary share capital Additional capital, ordinary shares Retained earnings While the market value of the company did not show any difference from the book value, except for the following assets: Market valoe Book value 255000 3400000 3300000 1700000 2700000 Lands Buildings (7 years) Equipment (5 years) 3700000 On December 31, 2018, BIM recorded a net income of 7,950,000 dinars and announced a dividend of 3,000,000 dinars for the same year. Required: -If you know that JDE uses the equity method to record its investments and assuming that any increase in the purchase price (CT) against the market value of the acquired assets and liabilities is due to goodwill registered in the name of BIM, prepare Investment journal entries for the year 2018 TFire table

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d Schedule to calculate Gaodwl al on danuary l 2020 55 Interest purchoted n Bim Book value of BI... View the full answer