Wayne Management Ltd acquired all assets and liabilities of Felix Ltd on 30 June 2020. The...

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Wayne Management Ltd acquired all assets and liabilities of Felix Ltd on 30 June 2020. The carrying amount and fair value of assets and liabilities taken over are as follows: Assets Carrying amount (S) Fair value (S) Cash 10,000 10,000 Accounts Receivables 600,000 800,000 Inventory 1,200,000 1,300,000 Property, Plant and Equipment (Net) 300,000 350,000 Liabilities Accounts payable Provision for annual leave 400,000 400,000 150,000 150,000 In addition, due diligence identified the existence of a brand names that was valued by an expert at $100,000. The due diligence process also uncovered contingent liabilities (Guarantee Payable) that were measured at $30,000. The consideration paid was $900,000. Required (a) Calculate the amount of goodwill that would be recorded in the books of Wayne Management Ltd following the acquisition of Felix Ltd. Show all workings. [Answer and show workings here] Wayne Management Ltd acquired all assets and liabilities of Felix Ltd on 30 June 2020. The carrying amount and fair value of assets and liabilities taken over are as follows: Assets Carrying amount (S) Fair value (S) Cash 10,000 10,000 Accounts Receivables 600,000 800,000 Inventory 1,200,000 1,300,000 Property, Plant and Equipment (Net) 300,000 350,000 Liabilities Accounts payable Provision for annual leave 400,000 400,000 150,000 150,000 In addition, due diligence identified the existence of a brand names that was valued by an expert at $100,000. The due diligence process also uncovered contingent liabilities (Guarantee Payable) that were measured at $30,000. The consideration paid was $900,000. Required (a) Calculate the amount of goodwill that would be recorded in the books of Wayne Management Ltd following the acquisition of Felix Ltd. Show all workings. [Answer and show workings here]

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To calculate the amount of goodwill that would be recorded in the books of Wayne Management Ltd foll... View the full answer