Richard Bhd acquired 100% of the shares of Beez on 31 December x3. It paid...
70.2K
Verified Solution
Link Copied!
Question
Accounting
Richard Bhd acquired 100% of the shares of Beez on 31 December x3. It paid RM659,000 to acquire the shares. The following statement of net assets on 1 December x3 relates to Beez.
Beez had not provided for deferred tax and is required to provide for it on 31 December x3. Retirement benefits are allowed for tax when it is paid.
Current tax rate is 30%.
Required:
a. Calculate the deferred tax that should appear in the accounts of Beez.
b. Compute the goodwill on consolidation.
Posted by: Iswan Shah
Fair value Carrying Tax base amount RM'000 RM'000 300 30 104 100 (50) (100) RM'000 200 500 Building 15 40 Plant and equipment 104 Inventory Trade receivables Retirement benefits liability Current liabilities 114 110 (50) (100) 110 (100)
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!
