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a. calculate the purchase consideration b. calculate the goodwill or bargain purchase for this transaction c. Prepare the journal entries in the books of Chelsea
a. calculate the purchase consideration
Pax Limited showed the following assets and liabilities in its financial statements at 31 December 2018. 3.1. The current market rate for similar transactions is 8.5% per annum. Chelsea Limited planned to acquire all the assets and liabilities of Pax Limited on 1 July 2018 and agreed to pay R13,400,000 in cash on 1 July 2019 in full settlement of the acquisition b. calculate the goodwill or bargain purchase for this transaction
c. Prepare the journal entries in the books of Chelsea Limited relating to this transaction
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