On January 2 , Year 4 , Brady Ltd . , a private company, purchased 8 0
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Question:
On January Year Brady Ltd a private company, purchased of the outstanding shares of Partridge Ltd for $ Partridges statement of financial position and the fair values of its identifiable assets and liabilities for that date were as follows:
Carrying Amount Fair Value
Plant and equipment net $ $
Patents net
Inventory
Accounts receivable
Cash
$
Ordinary shares $
Retained earnings
bonds payable
Accounts payable
$
The patents had a remaining useful life of ten years on the acquisition date.
The bonds were issued on January Year and mature on December Year Goodwill impairment losses were as follows:
Year : $
Year : $
Partridge declared and paid dividends of $ in Year
Brady uses ASPE for reporting purposes. It elected to use the straightline method to amortize any premium or discount on bonds payable.
On December Year the financial statements of the two companies were as follows:
STATEMENT OF FINANCIAL POSITION
Brady Partridge
Plant and equipment net $ $
Patents net
Investment in Partridge Ltdequity method
Inventory
Accounts receivable
Cash
$ $
Ordinary shares $ $
Retained earnings
Bonds payable
Accounts payable
$ $
INCOME STATEMENTS
Brady Partridge
Sales $ $
Equity method income
Cost of goods purchased
Change in inventory
Depreciation expense
Patent amortization expense
Interest expense
Other expenses
Income taxes
Profit $ $
Related Book For
Modern Advanced Accounting In Canada
ISBN: 9781259066481
7th Edition
Authors: Hilton Murray, Herauf Darrell
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