Question
a. Determine the acquisition date b. Calculate the purchase consideration c. Calculate the amount of goodwill or bargain purchase in any d. prepare the journal
a. Determine the acquisition dateb. Calculate the purchase consideration
c. Calculate the amount of goodwill or bargain purchase in any
d. prepare the journal entries in the books of contrast limited
The following transactions took place on the 30 June 2018. An interest rate of 8.5% per annum applies to similar transactions. Contrast Limited resolved to acquire all share capital of Pax Limited on 1 July 2018 and agreed to settle all payments for an amount of R13,200,000 on 1 July 2019. Pax Limited owned some patents with an estimated fair value of R500,000 at 31 December 2018.
Step by Step Solution
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Step: 1
a Deter mine the acquisition date ANS WER The acquisition date is 1 July 2018 EX PL AN ATION The tra...
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
