ACC705 – On 1 July 2015, Tuna Ltd acquired all the issued shares of Brim Ltd.
Individual Assignment ACC705 On 1 July 2015, Tuna Ltd acquired all the issued shares of Brim Ltd. Tuna Ltd paid $30 000 in cash and 20 000 shares in Tuna Ltd valued at $3 per share. At this date, the equity of Brim Ltd consisted of $66 000 share capital and $6000 retained earnings. At 1 July 2015, all the identifiable assets and liabilities of Brim Ltd were recorded at amounts equal to their fair values except for: Carrying amount Fair value Plant (cost $150 000) $120 000 $123 000 Patents 90 000 105 000 Inventory 18 000 22 500 The plant was considered to have a further 5-year life. The patents were sold for $120 000 to an external entity on…
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