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Arthur Ltd acquires all the equity of Martha Ltd for a cash payment of $3 000 000 on 30 June 2025. The statement of financial
Arthur Ltd acquires all the equity of Martha Ltd for a cash payment of $3 000 000 on 30 June 2025. The statement of financial position of Martha Ltd at purchase date is:
Particulars
Assets
Cash
Accounts receivable
Equipment
Land
Total assets
Liabilities
Accounts payable
Loans
Total liabilities
Shareholders' equity
Share capital
Amount ($000)
100
90
2300
2 090
4 580
85
1 000
1 085
2500
Retained earnings
995
Total liabilities and shareholders' fund4 580
Assuming the assets are at fair value, what is the goodwill or bargain purchase on consolidation?
Arthur Ltd acquires all the equity of Martha Ltd for a cash payment of $3 000 000 on 30 June 2025. The statement of financial position of Martha Ltd at purchase date is:
Particulars
Assets
Cash
Accounts receivable
Equipment
Land
Total assets
Liabilities
Accounts payable
Loans
Total liabilities
Shareholders' equity
Share capital
Amount ($000)
100
90
2300
2 090
4 580
85
1 000
1 085
2500
Retained earnings
995
Total liabilities and shareholders' fund4 580
Assuming the assets are at fair value, what is the goodwill or bargain purchase on consolidation?
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