On 1 July 2019, BASIL Ltd acquired all the issued shares
CASE STUDY – BASIL LIMITED and LINDA LIMITED – CONSOLIDATION AND GOODWILL ANALYSIS On 1 July 2019, BASIL Ltd acquired all the issued shares (ex-div.) of LINDA Ltd for $272 000. At this date the financial statements of Lucky Ltd showed the following balance in its accounts: Share Capital $150 000 General Reserve 40 000 Retained Earnings 80 000 Dividend Payable 20 000 Goodwill 10 000 At 1 July 2019, all identifiable assets and liabilities of Linda Ltd were recorded at amounts equal to the fair value. The financial statements of Basil Ltd and Linda Ltd at 30 June 2020 contained the following information: Basil Ltd $ Linda Ltd $ Profit for the period…
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