On 1 July 2019, Alpha Ltd acquired 80% of the shares (ex div.) of Beta...
80.2K
Verified Solution
Link Copied!
Question
Accounting
On 1 July 2019, Alpha Ltd acquired 80% of the shares (ex div.) of Beta Ltd for $285 000. The NCI owns the remaining 20% of the shares in Beta Ltd. At this date the shareholders equity of Suburb Ltd consisted of:
Share capital
$150 000
Retained earnings
75 000
General reserve
60 000
At this date, all the identifiable assets and liabilities of Suburb Ltd were recorded at amounts equal to their fair values except for the following:
Carrying amount ($)
Fair value
($)
Patents
100 000
130 000
Machinery (cost $140 000)
110 000
118 000
Required: Prepare the acquisition analysis at 1 July 2019, assuming partial goodwill method is used
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
