User Account

All Pages

Which line item for goodwill in the consolidation worksheet

Assignment Help Accounting Basics
Reference no: EM132618076

Happy Ltd purchased 100% of the shares in Day Ltd on 1 July 2020, for a cash consideration of $1,000,000. On that date, the equity balances of Day Ltd were:

Share Capital $500,000

Retained Earnings $300,000

Asset Revaluation Reserve $100,000

All of the identifiable net assets were recorded at their fair value in the books of Day Ltd, except for:

Provision for legal claims (contingent liability) - Estimated claim recorded in the note $10,000; Fair value $20,000

Day Ltd's assets also included Goodwill of $10,000.

Problem 1: The Company Tax rate is 30%. The line item for goodwill in the consolidation worksheet will include the following entry in the adjustment column:

Select one:

Option a. Dr Goodwill of $93,000

Option b. Cr Goodwill of $10,000

Option c. Dr Goodwill of $114,000

Option d. Dr Goodwill of $124,000

Option e. None of the other options are correct.

Reference no: EM132618076

Questions Cloud

What business combination valuation entry to be recognised : The company tax rate was 30%. The Business Combination Valuation Entry to be recognised by Axe Man Limited for the land at acquisition date is
Real-world examples of behavioral economics : What are real-world examples of behavioral economics and Why might a consumer make an irrational economic decision?
Draw the readers attention to any contrasting views : Draw the readers attention to any contrasting views expressed in prior research in this area and give your view of how differing opinions
Why is eskom having the ability to influence price : Why is Eskom having the ability to influence price and quantity if it's output as compared to other companies.
Which line item for goodwill in the consolidation worksheet : The Company Tax rate is 30%. The line item for goodwill in the consolidation worksheet will include the following entry in the adjustment column
How soul limited will record : Provision for guarantee made by Cage Ltd because it did not consider the outflow probable. The tax rate is 30%. Soul Limited will record
Dilemma relating to cultural diversity-multiculturalism : Propose a scenario where you or someone you know are confronted with a moral dilemma relating to cultural diversity and multiculturalism.
Involvement in the markets : Do you agree with Keynes assessment that wage-price rigidity requires government's involvement in the markets? Why? Why not?
Which power over an investee : With regards to the concept of control, power over an investee?means the investor must have claim to future rights of fixed return on their investment.

Reviews

Write a Review

Accounting Basics Questions & Answers

  What is the ending balance for retained earnings

Dividends of $220,000 were paid during the year. What is the ending balance for retained earnings in 2012

  Describe a way to select sample and test the given controls

Should these controls be categorized as key controls? What is the benefits of testing these controls? Describe a way to select a sample and these controls.

  Compute working capital

Hallberg Company reported total assets of $165,000;current assets of $22,000; Compute working capital

  Behavior to the audi committee

Assuming the employee was a CPA and knew that the use of MTM accounting was beyond the scope of the SEC approval parameters, do you believe that the employee had a responsibility to report the behavior to the audi committee? Why or why not?

  Compute what was the total amount of manufacturing costs

What was the total amount of manufacturing costs assigned to the 8,000 units in the ending work in process

  The machining and assembly departments

What predetermined overhead rates would be used in the Machining and Assembly Departments, respectively?

  Pros and cons of using reversing entries

What are the pros and cons of using reversing entries? Why are reversing entries optional?

  Analyze the effects of events on the accounting equation

Analyze the effects of these events on the accounting equation of the medical practice of Dr. Char Morin, P.C. Begin with the first transaction on January 6

  Discuss the black-scholes model

Fethe's Funny Hats is considering selling trademarked curly orange-haired wigs for University of Tennessee football games.

  Companies usually prepare an adjusting journal entry to

companies usually prepare an adjusting journal entry to accrue warranty expenses. when this is done the warranty

  Justify effective funding strategies

Please explain, identify, and justify effective funding strategies in the following areas:

  Tis year randy paid 28000 of interest randy also paid

this year randy paid 28000 of interest. randy also paid 2500 of interest on his car loan and 4200 of margin interest to

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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