ACC3003 Financial Accounting and Reporting – Myer Ltd acquired all the issued shares of Thompson Ltd
Myer Ltd acquired all the issued shares of Thompson Ltd on 1 July 2018 for $200 000. At this date Thompson Ltd recorded a dividend payable of $25 000 and equity of: Share capital $ 54 000 Retained earnings 36 000 Asset revaluation surplus 18 000 All the identifiable assets and liabilities of Thompson Ltd were recorded at amounts equal to their fair values at acquisition date except for: Carrying amount Fair value Inventory $ 10 000 $ 12 000 Machinery (cost $100 000) 80 000 85 000 The machinery was considered to have a further 5-year life. Of…
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