It is January 20, Year 13. Mr. Neely, a partner in your office, wants to see you,
Question:
It is January 20, Year 13. Mr. Neely, a partner in your office, wants to see you, CPA, about Bruin Car Parts Inc. (BCP), a client requiring assistance. BCP prepares its financial statements in accordance with ASPE. Richard (Rick) Bergeron, Lyle Chara, and Jean Perron each own 100 common shares of BCP. Jean wants BCP to buy him out. You made some notes on BCP during your discussion with Mr. Neely (Exhibit I).
Mr. Neely forwarded an email from Rick (Exhibit II) to you, along with excerpts from the Signed Shareholders’ Agreement (SSA) (Exhibit III), the draft financial statements for BCP for the year ended November 30, Year 12 (Exhibit IV), and some additional information regarding the draft financial statements (Exhibit V).
Mr. Neely tells you, “CPA, we need to establish a buyout value. Our valuation must take into account any accounting adjustments required to comply with the SSA requirements. Please also consider any other issues that may be relevant to the other shareholders.”
Step by Step Answer:
Modern Advanced Accounting In Canada
ISBN: 9781259654695
9th Edition
Authors: Hilton Murray, Herauf Darrell