![Question 1: (18 marks) Supreme Ltd made a takeover bid for all the issued voting shares of Mighty Ltd offiering 2 Supreme Ltd shares for every 3 Mighty Ltd shares. The offer from Supreme Ltd was accepted by 70% of the shareholders of Mighty Ltd. At acquisition date, which was deemed to be 1 July 2013, the fou ng information is available: Mighty Ltd at 30 June 2013 Share Capital (750 000 shares) Retained Profits $000 750 600 Capital Reserve Total Equity 2 550 Market value of each companys shares at 1 July 2013 Supreme Ltd Mighty Ltd $6.20 $3.50 In Mighty Ltds accounting records, land was stated at $300 000 below its cost to the economic entity (i.e. fair value at acquisition date). This is to be accounted for as a consolidation adjustment. The rate ofcompany income tax is 30%. Required: use the space provided below] (i) Complete the acquisition analysis on 1 July 2013 for Supreme Ltds investment in Mighty Ltd as required by AASB 3 and determine the amount of goodwill or gain on bargain purchase following the fair value method of goodwill. (5 marks) (ii) Prepare the acquisition journal entries as required by AASB 10 at 1 July 2013. (13 marks)](http://img.homeworklib.com/questions/f7e24370-77f2-11ea-90e7-5f9e2931968a.png?x-oss-process=image/resize,w_560)
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Question 1: (18 marks)
Supreme Ltd made a takeover bid for all the issued voting
shares...
Venus Ltd made a takeover bid for all the issued voting shares of Mars Ltd offering...
Venus Ltd made a takeover bid for all the issued voting shares of Mars Ltd offering 3 Venus Ltd shares for every 2 Mars Ltd shares. The offer from Venus Ltd was accepted by 90% of the shareholders of Mars Ltd. At acquisition date, 1 January 20X7, the following information was available. Mars Ltd at 31 December 20X6 $’000 Share Capital (200 000 shares) 200 Capital Profits Reserve 300 Retained Profits 150 Total Equity 650 Market value of each company's...
QUESTION 4: Total of 18 marks This question consists of 2 parts (Parts A and B)....
QUESTION 4: Total of 18 marks This question consists of 2 parts (Parts A and B). All parts must be attempted. Alice Ltd acquired all the assets, except cash, and assumed all the liabilities of Medicure Ltd on 1 July 2020. Alice Ltd agreed to provide the following consideration on 1 July 2020: (1) Cash payment of $100,000, half of which is paid on the acquisition date, the remaining half of which is to be paid one year after the...
QUESTION 3 30 marks Sky Ltd acquired all the issued shares (Ex div.) of Nu Ltd...
QUESTION 3 30 marks Sky Ltd acquired all the issued shares (Ex div.) of Nu Ltd on 1 July 2018 for $100 000. At this date Nu Ltd recorded a dividend payable of $10 000 and equity of: Share capital Retained earnings Asset revaluation surplus $54 000 36 000 18 000 All the identifiable assets and liabilities of Nu Ltd were recorded at amounts equal to their fair values at acquisition date except for: Inventories Machinery (cost $100 000) Carrying...
Sky Ltd acquired all the issued shares (Ex div.) of Nu Ltd on 1 July 2018...
Sky Ltd acquired all the issued shares (Ex div.) of Nu Ltd on 1 July 2018 for $100 000. At this date Nu Ltd recorded a dividend payable of $10 000 and equity of: | Share capital Retained earnings | Asset revaluation surplus $54 000 36 000 18 000 All the identifiable assets and liabilities of Nu Ltd were recorded at amounts equal to their fair values at acquisition date except for: Inventories Machinery (cost $100 000) Carrying amount 16...
Jimmy Ltd acquired all the issued shares (cum-div.) of Nu Ltd on 1 July 2019 for...
Jimmy Ltd acquired all the issued shares (cum-div.) of Nu Ltd on 1 July 2019 for $110 000. At this date Nu Ltd recorded a dividend payable of $10 000 and equity of: Share capital $54 000 Retained earnings 36 000 Asset revaluation surplus 18 000 All the identifiable assets and liabilities of Nu Ltd were recorded at amounts equal to their fair values at acquisition date except for: Carrying amount Fair value Inventories 14 000 16 000 Machinery (cost...
Aº Read aloud Draw Highlight Erase Question 2 Week 8 (7 marks) The P Ltd acquires...
Aº Read aloud Draw Highlight Erase Question 2 Week 8 (7 marks) The P Ltd acquires all issued capital of the S Ltd for a consideration of $1,000,000 cash and 800,000 shares each valued at $1.50. The summary statement of the financial position of the subsidiary company immediately following the acquisition is: Fair value of assets acquired $2,640,000 Fair value of liabilities acquired $720,000 Total shareholders' equity of the subsidiary company $800,000 Retained earnings of the subsidiary company $1,120,000 Required:...
Question 2 (10 marks) The Parent company acquires all issued capital of the subsidiary company for...
Question 2 (10 marks) The Parent company acquires all issued capital of the subsidiary company for a consideration of $1000000 cash and 800000 shares each valued at $1.25. The summary statement of financial position of the subsidiary company immediately following the acquisition is: Fair value of assets acquired Fair value of liabilities acquired Total shareholders’ equity of the subsidiary company Retained earnings of the subsidiary company Required: $2640000 $720000 $800000 $1120000 (i) Pass the necessary journal entry to record the...
Question 6 Swamp Ltd acquired 90% of the shares (cum div.) of Tortoise Ltd on 1...
Question 6 Swamp Ltd acquired 90% of the shares (cum div.) of Tortoise Ltd on 1 July 2017 for $474 000. At this date, the equity of Tortoise Ltd consisted of: Share capital Asset revaluation surplus Retained earnings $ 250 000 60 000 160 000 At acquisition date all the identifiable assets and liabilities of Tortoise Ltd were recorded at amounts equal to fair value. Tortoise Ltd had recorded goodwill of $10 000 and a dividend payable of $20 000,...
Ethan Ltd acquired all the issued shares ( div.) of Darren Ltd on 1 July 2018 for $110 000. At this date Darren Ltd reco...
Ethan Ltd acquired all the issued shares ( div.) of Darren Ltd on 1 July 2018 for $110 000. At this date Darren Ltd recorded a dividend payable of $10 000 and equity of: Share capital $54 000 Retained earnings 36 000 Asset revaluation surplus 18 000 All the identifiable assets and liabilities of Darren Ltd were recorded at amounts equal to their fair values at acquisition date except for: Carrying amount Fair value Inventories 14 000 16 000 Machinery...
Ethan Ltd acquired all the issued shares (ex div.) of Darren Ltd on l July 2017 for $110 000. At this date Darren Ltd...
Ethan Ltd acquired all the issued shares (ex div.) of Darren Ltd on l July 2017 for $110 000. At this date Darren Ltd recorded a dividend payable of $10 000 and equity of: Share capital Retained earnings Asset revaluation surplus $54000 36000 18000 All the identifiable assets and liabilities of Darren Ltd were recorded at amounts equal to their fair values at acquisition date except for: Carrying amount Fair value $14000 92500 $16000 Inventories Machinery (cost $100 000) 94000...
QUESTION 4: Total of 18 marks This question consists of 2 parts (Parts A and B). All parts must be attempted. Alice Ltd acquired all the assets, except cash, and assumed all the liabilities of Medicure Ltd on 1 July 2020. Alice Ltd agreed to provide the following consideration on 1 July 2020: (1) Cash payment of $100,000, half of which is paid on the acquisition date, the remaining half of which is to be paid one year after the...
QUESTION 3 30 marks Sky Ltd acquired all the issued shares (Ex div.) of Nu Ltd on 1 July 2018 for $100 000. At this date Nu Ltd recorded a dividend payable of $10 000 and equity of: Share capital Retained earnings Asset revaluation surplus $54 000 36 000 18 000 All the identifiable assets and liabilities of Nu Ltd were recorded at amounts equal to their fair values at acquisition date except for: Inventories Machinery (cost $100 000) Carrying...
Sky Ltd acquired all the issued shares (Ex div.) of Nu Ltd on 1 July 2018 for $100 000. At this date Nu Ltd recorded a dividend payable of $10 000 and equity of: | Share capital Retained earnings | Asset revaluation surplus $54 000 36 000 18 000 All the identifiable assets and liabilities of Nu Ltd were recorded at amounts equal to their fair values at acquisition date except for: Inventories Machinery (cost $100 000) Carrying amount 16...
Aº Read aloud Draw Highlight Erase Question 2 Week 8 (7 marks) The P Ltd acquires all issued capital of the S Ltd for a consideration of $1,000,000 cash and 800,000 shares each valued at $1.50. The summary statement of the financial position of the subsidiary company immediately following the acquisition is: Fair value of assets acquired $2,640,000 Fair value of liabilities acquired $720,000 Total shareholders' equity of the subsidiary company $800,000 Retained earnings of the subsidiary company $1,120,000 Required:...
Question 6 Swamp Ltd acquired 90% of the shares (cum div.) of Tortoise Ltd on 1 July 2017 for $474 000. At this date, the equity of Tortoise Ltd consisted of: Share capital Asset revaluation surplus Retained earnings $ 250 000 60 000 160 000 At acquisition date all the identifiable assets and liabilities of Tortoise Ltd were recorded at amounts equal to fair value. Tortoise Ltd had recorded goodwill of $10 000 and a dividend payable of $20 000,...
Ethan Ltd acquired all the issued shares (ex div.) of Darren Ltd on l July 2017 for $110 000. At this date Darren Ltd recorded a dividend payable of $10 000 and equity of: Share capital Retained earnings Asset revaluation surplus $54000 36000 18000 All the identifiable assets and liabilities of Darren Ltd were recorded at amounts equal to their fair values at acquisition date except for: Carrying amount Fair value $14000 92500 $16000 Inventories Machinery (cost $100 000) 94000...
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