Parrot Ltd acquired 80% of the share capital of Squirrel Ltd for $264 800. On that date, the statement of financial
On 1 July 2016, Parrot Ltd acquired 80% of the share capital of Squirrel Ltd for $264 800. On that date, the statement of financial position of Squirrel Ltd consisted of: Share capital $250 000 General reserve 10 000 Asset revaluation surplus 15 000 Retained earnings 10 000 Liabilities 180 000 $465 000 Cash $ 35 000 Inventories 70 000 Land 65 000 Plant and equipment 300 000 Accumulated depreciation — plant and equipment (130 000) Trademark 100 000 Goodwill 25 000 $ 465 000 At 1 July 2016, all identifiable assets and liabilities of Squirrel Ltd were recorded at fair value except for: Carrying amount Fair value Inventories $ 70 000 $ 80 000 Land 65 000 85 000…
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