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  3. 4. if sima ltd purchased just 90% of the issued sh

4. If sima ltd purchased just 90% of the issued shares if Nima ltd on...

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Accounting

4. If sima ltd purchased just 90% of the issued shares if Nima ltd on 1 july 2020 and partial goodwil method is in use, Prepare the acquisition analysis at acquisition date.
5. Prepare worksheet adjusting journal entries for the consolidation at acquisition date.
6. Explain in details ;
a. what is consolidation according ti accounting standards?
image
Sima Ltd purchased all issued shares of Nima Ltd for $1900000 on 1 July 2020 when the equity of Nima Ltd was as follows; 1 2 Share capital 760000 3 Asset revaluation surplus 570000 Retained earnings 285000 At this date, Nima Ltd had not recorded any goodwill, and all identifiable assets and liabilities were recorded at fair value except for the followings Further Account Cost Carrying Amount Fair value life(Years) Inventories $57,000 $143,000 Land Planti $221,250 $177,000 Contingent Liability Nima Ltd identified at acquisition date a lawsuit where Nima Ltd was sued by a former supplier with the Fairvalue of: Unrecorded Asset Nima Ltd had unrecorded and internally generated Patent with the FairValue of; Nima Ltd had unrecorded and internally generated in-process research and development with the FairValue of: Unrecorded Asset Tax rate:30%. $62,700 $157,000 $212,000 $23,000 $57,000 $43,000

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