On 1 July 2013 David Ltd acquired all of the share capital of Goliath Limited for a consideration...
On 1 July 2013 David Ltd acquired all of the share capital of Goliath Limited for a consideration of $500,000 cash and a brand that was held in their accounts at a book value of $10,000 but at 1 July 2013 had a fair value of $24,000. At that date all the identifiable assets and liabilities were recorded at fair value with the exception of: The inventory was all sold by 30/6/14. The remaining useful life of the plant is...
Question 1 King Ltd acquired 100% of the share capital of Sing Ltd on 1 July 2015, for $356,000. At the acquisition date, the equity of Sing Ltd comprise of the following: $ Share capital 200,000 Retained earnings 80,000 Total 280,000 The identifiable net assets of Sing Ltd were recorded at fair value at the date of acquisition, except for inventory that had a fair value which was $2,000 higher than its carrying amount, and an item of plant...
a) Liala Ltd acquired all the issued shares of Jordan Ltd on 1 January 2015. The following transactions occurred between the two entities: On 1 June 2016, Liala Ltd sold inventory to Jordan Ltd for $12,000, this inventory previously costed Liala Ltd $10,000. By 30 June 2016, Jordan Ltd had sold 20% of this inventory to other entities for $3,000. The other 80% was all sold to external entities by 30 June 2017 for $13,000. During the 2016–17...
a) Liala Ltd acquired all the issued shares of Jordan Ltd on 1 January 2015. The following transactions occurred between the two entities: On 1 June 2016, Liala Ltd sold inventory to Jordan Ltd for $12,000, this inventory previously costed Liala Ltd $10,000. By 30 June 2016, Jordan Ltd had sold 20% of this inventory to other entities for $3,000. The other 80% was all sold to external entities by 30 June 2017 for $13,000. During the 2016–17...
On 1 July 2017, Parent Ltd acquired all the shares of Son Ltd, on a cum-div. basis, for $3,230,000. At this date, the equity of Son Ltd consisted of: $1,200,000 Share capital -600 000 shares General reserve Retained earnings 500,000 900,000 At the acquisition date, Son Ltd reported a dividend payable of $50,000 and its assets included $100, 000 of recorded goodwill. The dividend payable at the acquisition date was subsequently paid in August 2017. On 1 July 2017, all...
xxx ltd acquired 100% of the issued capital of AAA LTD on 1 July 2017 at the date of acquisition all identifiable assets of AAA ltd were recorded at fair value except for. Plant( cost $500,000) carrying amount 300,000 Fair value 350,000 The plant has a further useful life of 5 years with zero residual value. And the corporate tax rate is 30% Prepare the BCVR required for plant at 30 june 2018. Explain why.
On 1 July 2015, Fluffy Ltd acquired all the issued shares of Glider Ltd. Fluffy Ltd paid $30 000 in cash and 20 000 shares in Fluffy Ltd valued at $3 per share. At this date, the equity of Glider Ltd consisted of $66 000 share capital and $6000 retained earnings. At 1 July 2015, all the identifiable assets and liabilities of Glider Ltd were recorded at amounts equal to their fair values except for: Additional information (a) Fluffy Ltd...
Hitech Ltd acquired all of the issued share capital of Lotech Ltd on 30 June 2016 for a cash consideration of $400,000 At that time the net assets of Lotech Ltd were represented as follows: Share capital 300,000 Retained earnings 50,000 Net assets 350,000 When Hitech acquired its investment in Lotech the following information applied: Land held by Lotech had a fair value $10,000 greater than the carrying value A contingent liability relating to an unsettled legal claim with a...
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 $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...