Nina ltd purchased 90% of the issued shares of carl ltd for $2543000 on July 2018 when the equity ltd was as follows:
|Asset revaluation surplus||381150|
At this date, carl ltd had not recorded any goodwill, and all identifiable assets and liabilities were recorded at fair value except for the following:
|Account||Cost||Carrying amount||Fair value||Further life (years)|
|Carl ltd identified a t acquisition date a contingent liability related to a lawsuit where carl ltd was sued by a former supplier||$31000|
|Carl ltd had unrecorded and internally generated patent with the FairValue of:||$76000|
|Carl ltd had unrecorded and internally generated in-process research and development with the FairValue of:||$57000|
60% of inventory on hand at 1 July 2018 were sold by 30 june 2019. Further life of the assets are listed on the above table. Partial goodwill method is under use and tax rate:30%
- Prepare the acquisition analysis at acquisition date.
- Prepare the business combination valuation entries and pre-acquisition entry at acquisition date.
- Prepare the journal entry to recognise NCI at acquisition date.
- Prepare the consolidation worksheet entries at 30 june 2019. Assume a profit for carl ltd for the year ended 30 june 2019 of $117300.
If similar question, contact at firstname.lastname@example.org or WhatsApp/text at +1(450)800-2020.
Click on Buy Solution and make payment. All prices shown above are in USD. Payment supported in all currencies. Price shown above includes the solution of all questions mentioned on this page. Please note that our prices are fixed (do not bargain).
After making payment, solution is available instantly.Solution is available either in Word or Excel format unless otherwise specified.
If your question is slightly different from the above question, please contact us at email@example.com with your version of question.