Reference no: EM133115500
Question - On 30 June 2022, Hub Ltd. paid $120,000 to buy all the shares of Olive Ltd. On this date, Olive Ltd. reported the following balances.
Share capital $77,000
Retained earnings $5,000
General Reserve $20,000
On the date of acquisition, all the assets and liabilities of Olive Ltd. were at fair value, except:
Land was recorded at a cost of $250,000, but had a fair value of $180,000.
Olive Ltd. had recorded $90,000 as an expense for in-process research and development. However, Hub Ltd. considered that this research and development was now an asset with a fair value of $18,000. Olive Ltd. considered that the fair value should be $25,000.
Required -
1. Prepare the acquisition analysis on 30 June 2022.
2. Prepare all the relevant journal entries required for the consolidation worksheet on 30 June 2022.
3. Justify the assumptions you made in preparing the acquisition analysis in question 1.
|
Compute net sales for the two months ended february
: Assuming that Sales Discounts are reported as contra-revenue, compute Net Sales for the two months ended February 28
|
|
Exchange rate between myr and gbp
: How Covid-19 pandemic affect the exchange rate between MYR and GBP?
|
|
What is the bond price
: Morin Company's bonds mature in 6 years, have a par value of $1,000, and make an annual coupon interest payment of $85. The market requires an interest rate of
|
|
Explain the bond markets and stock markets
: What are the main differences between the bond markets and stock markets?
|
|
Prepare all the relevant journal entries required
: Land was recorded at a cost of $250,000, but had a fair value of $180,000. Prepare all the relevant journal entries required
|
|
Calculate the expected returnand standard deviations
: You want to invest in a portfolio consisting of two stocks: Apple and Orange. There are three possible states by the end of your investment horizon.
|
|
Prepare all the relevant journal entries required
: Prepare all the relevant journal entries required for the consolidation worksheet on 30 June 2022 for the following transactions
|
|
How much should he set aside today for the purchase
: Stephen plans to purchase a car 7 years from now. The car will cost $37,672 at that time. Assume that Stephen can earn 7.09 percent (compounded monthly, semi-an
|
|
What are earnings after taxes
: Its total assets are $100,000, of which $25,000 are current assets and $75,000 are fixed assets. What are earnings after taxes
|