Question: please don't answer my by hand written, better if use your PC to answer and hopefully the answer would include the methods. Thanks in advance
a) You are analysing the potential purchase of 100% Sohu Corp by your company, Sina Corp. The information below is provided. Your company, Sina Corp pays in cash RM200,000 for Sohu Corp and the cash is obtained via issuing new share. Sina Sohu Historical Value Historical Value Fair Value RM'000 RM'000 RM'000 80 60 65 40 30 100 60 80 Current Assets Land Plants, net Equipment, net Cash Total assets 10 390 160 195 60 Current liabilities Shareholders' equity Total Liabilities and equityll 240 150 390 100 160 Required: Prepare a consolidated balance sheet AND inter-company transaction. (20 marks) b) What are the major accounting distortions for debt securities investment
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