Prepare the acquisition analysis at july

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July 2019, Alpha Ltd acquired 80% of the shares (ex div.) of Beta Ltd for $285 000. The NCI owns the remaining 20% of the shares in Beta Ltd. At this date the shareholders' equity of Suburb Ltd consisted of:

Share capital $150 000
Retained earnings 75 000
General reserve 60 000

At this date, all the identifiable assets and liabilities of Suburb Ltd were recorded at amounts equal to their fair values except for the following:

                                   Carrying amount ($)           Fair value

Patents                          100 000                       118 000
Machinery(cost $140 000) 110 000                         130 000

Required:

Problem 1: Prepare the acquisition analysis at 1 July 2019, assuming the full goodwill method is used. The NCI in Beta Ltd had a fair value of $70 320.

Reference no: EM132945626

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