Calculate Goodwill on Acquisition Date

Assignment Help Accounting Basics
Reference no: EM132941259

Question - A Ltd acquired 70% of the shares of James Ltd on 1st July 2016 for $540,000. The B Ltd equity consisted of the following items at acquisition date

Share Capital: $500,000

General Reserve: 80,000

Retained Earnings: 50,000

Asset revaluation reserve: 20,000

All identifiable assets and liabilities of James Ltd are recorded at fair value at this date except for inventory for which the fair value was $10,000 greater than carrying amount and plant which had a carrying amount of $150,000 (Accumulated depreciation net of $40,000) and a fair value was $170,000. The plant has a further 5 years life.

Requirement - Calculate Goodwill on Acquisition Date for A Ltd, B Ltd and 30% Non-controlling Interest.

Reference no: EM132941259

Questions Cloud

Calculate the gross pay : Calculate the following gross pay. Any hours over 40 is overtime and they are paid as time and a half. Ben works 42 hours @ $11.80/hour
Calculate the company weighted average costs : Its CFO says its marginal tax rate is 30% and its cost of common equity capital is 12%. Calculate the company's Weighted Average Costs
Calculate abcs dividends received deduction : ABC Company owns 40 percent of JMT Company and 95 percent of DEM Company. Calculate ABCs dividends received deduction
Briefly describe the role and mission of the organization : Briefly describe the role and mission of the organization. What is the organization's position, or focus, regarding long term care or aging services.
Calculate Goodwill on Acquisition Date : Question - A Ltd acquired 70% of the shares of James Ltd on 1st July 2016 for $540,000. Calculate Goodwill on Acquisition Date
Discuss an alternative to downsizing : Discuss an alternative to downsizing and its implication on Human resources planning?
Describe the intent of the holidays act : Describe the intent of the Holidays Act (2003) and discuss TWO (2) different types of leave guaranteed in Aotearoa/New Zealand.
How would form a marketing plan : How would you form a marketing plan? What would you include in the plan? Why would you include it?
Provide journal entries for Chatim Corporation : Provide journal entries for Chatim Corporation for all transactions relating to its investment in Topsoil & Landscape Supplies Ltd. for the year 2019

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd