On 1 April 2020 Albion plc (Albion) acquired 80% of Wanderer pic's (Wanderer) ordinary shares. The...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On 1 April 2020 Albion plc ("Albion") acquired 80% of Wanderer pic's ("Wanderer") ordinary shares. The terms of the acquisition were: - a share exchange whereby Albion issued 2 ordinary shares in exchange for every 3 ordin shares of Wanderer, and - a cash payment of £1.54 per acquired share deferred until 1 April 2021. Albion has not recorded any of the consideration for Wanderer in its financial statements for the yea ended 31 March 2021. At 1 April 2020 the fair value of Albion's and Wanderer's ordinary shares wa £3.25 and £1.75 respectively. Albion's cost of capital is 12% per annum. The summarised statements of financial position of the two companies at 31 March 2021 are as set out below: Assets Non-current assets Property, plant and equipment Intangible assets Current assets Inventory Trade receivables Bank Total assets Equity and liabilities Albion £000 221,000 56,000 277,000 149,000 94,000 28,000 271,000 548,000 Wanderer £000 165,000 165,000 114,000 65,000 6,000 185,000 350,000 Equity and liabilities Share capital (ordinary shares of £1 per share) Share premium account Retained earnings Non-current liabilities Deferred tax Current liabilities Trade payables Total equity and liabilities 148,800 36,000 252,200 437,000 40,000 71,000 548,000 96,000 180,000 276,000 14,000 60,000 350,000 On 1 April 2020 Albion plc ("Albion") acquired 80% of Wanderer pic's ("Wanderer") ordinary shares. The terms of the acquisition were: - a share exchange whereby Albion issued 2 ordinary shares in exchange for every 3 ordin shares of Wanderer, and - a cash payment of £1.54 per acquired share deferred until 1 April 2021. Albion has not recorded any of the consideration for Wanderer in its financial statements for the yea ended 31 March 2021. At 1 April 2020 the fair value of Albion's and Wanderer's ordinary shares wa £3.25 and £1.75 respectively. Albion's cost of capital is 12% per annum. The summarised statements of financial position of the two companies at 31 March 2021 are as set out below: Assets Non-current assets Property, plant and equipment Intangible assets Current assets Inventory Trade receivables Bank Total assets Equity and liabilities Albion £000 221,000 56,000 277,000 149,000 94,000 28,000 271,000 548,000 Wanderer £000 165,000 165,000 114,000 65,000 6,000 185,000 350,000 Equity and liabilities Share capital (ordinary shares of £1 per share) Share premium account Retained earnings Non-current liabilities Deferred tax Current liabilities Trade payables Total equity and liabilities 148,800 36,000 252,200 437,000 40,000 71,000 548,000 96,000 180,000 276,000 14,000 60,000 350,000
Expert Answer:
Answer rating: 100% (QA)
Correct Ans 90 degree minus theta Explanation Projectile motion is a type ... View the full answer
Related Book For
International Financial Reporting A Practical Guide
ISBN: 978-1292200743
6th edition
Authors: Alan Melville
Posted Date:
Students also viewed these accounting questions
-
A firms cost of capital is 12 percent. The firm has three investments to choose among; the cash flows of each are as follows: Each investment requires a $1,000 cash outlay, and investments B and C...
-
On 1 April 2020 Andrew received a restored Ford Mustang from his employer Winc Pty Ltd, an IT Business, as part of his salary package. It cost $30,000.00. The lease and running costs are $1050 per...
-
The following information is also available: On 1 April 2020 Giant Energy Plc acquired share capital in Micro Solar Ltd. At that date, the retained earnings of Micro Solar Ltd amounted to 80m. Each...
-
Robert is the owner of an automobile manufacturing company. He calls for a board meeting and tells his directors that he wants to build a car that lets the users experience power and exhilaration. He...
-
The Moore Company is undergoing a period of financial stress due to the depressed economy. The company is in desperate need of cash. The only liquid asset that the company holds is $500,000 of...
-
Graph the updating functions associated with the following discrete-time dynamical systems, and cobweb for five steps starting from the given initial condition. xt+1 = xt/xt - 1, for xt > 1, starting...
-
Robinson Company has current assets of $65,000 and current liabilities of $40,000, of which accounts payable are $35,000. Robinsons cost of goods sold is $230,000, its merchandise inventory increased...
-
Payback methods, even and uneven cash flows You have the opportunity to expand your business by purchasing new equipment for $159,000. The equipment has a useful life of nine years. You expect to...
-
Windsor Corporation had January 1 and December 3 1 balances as follows. For 2 0 2 0 , cost of goods sold was $ 5 5 7 , 0 0 0 . Compute Windsor's 2 0 2 0 cash payments to suppliers. Cash payments to...
-
IAS36 Impairment of Assets was issued in June 1998 and subsequently revised in March 2004 and January 2008. Its main objective is to prescribe the procedures that should ensure that an entity's...
-
7-17. Which of the bonds has the most reinvestment risk? Explain your answer. (Hint: Refer to Table 7.2.) 7-year bonds with a 5% coupon 1-year bonds with a 12% coupon 3-year bonds with a 5% coupon...
-
On January 3, 2020, missiles launched by a U.S. drone struck a vehicle convoy leaving the Baghdad, Iraq airport and killed Iranian General Qasem Soleimani, along with 9 other people, including Iraqi...
-
2. Rhianna is buying a car for $18,300. She has a $1500 trade-in allowance and will make a $2000 down payment. She will finance the rest with a 4-year auto loan at 2.8% APR. Monthly Car Loan Payment...
-
What is the justified trailing price-to-earnings (P/E) multiple of a stock that has a payout ratio of 42 % if the shareholders require a return of 10% on their investment and the expected growth rate...
-
How much do you need to invest in your high-interest investment account each month if you want to retire with $2.5 million 36 years from now? Assume a 1% monthly interest rate, with a monthly...
-
Justin Manufacturing wants to compute for the inventory valuation of its raw materials. Below are the data for the month of June: June 1 Balance1, 000 @ P4.00 June 3 Issued100 June 5Purchased500 @...
-
1. Identify and explain 3 types of Owner-manager relationships. 2. Identify one line item (by number) of the management contract and offer your opinion on why it is important
-
(a) Water flows through the nozzle of a garden hose. Find an expression for m in terms of line pressure P 1 , ambient pressure P 2 , inside hose diameter D 1 , and nozzle outlet diameter D 2 . Assume...
-
C plc has the following after-tax profits for its two most recent accounting periods: 000 Year to 31 October 2016...................... 330 Year to 31 October 2017...................... 341 On 1...
-
(a) Define the terms "financial instrument", "financial asset", "financial liability" and "equity instrument". (b) Explain the way in which international standard IAS32 distinguishes between...
-
Klarke plc acquired a subsidiary, Cameroon Ltd, on 1 October 2017. The statements of financial position of Klarke plc and Cameroon Ltd as at 30 September 2018 are as follows: Additional data: (i) The...
-
Overtime pay for a production department Curry Company employs nine production workers at $7.00 per hour for first shift and a 50 percent overtime premium for any hours worked in excess of 40 per...
-
Understanding inventory cost data Data relevant to Job No. QV1173 are: An analysis of the production data indicate a number of additional items as follows: a. In addition to the 200 good units, there...
-
Identifying errors in accounting for materials Ristlott Company is a small manufactur- ing company using a perpetual inventory system. Recently the company hired an accountant who has not worked for...
Study smarter with the SolutionInn App