Banana Ltd acquired all of the net assets of Orange Ltd on 1 July 2020 The consideration paid totalled $350,000 On the date of acquisition, Orange Ltd had the following assets and liabilities on their balance sheet Accounts receivable $2,500 Equipment $100,000, Buildings $100,000 Land at cost $100,000 Long term loan payable 1 July 2020 $10,000 Accumulated depreciation Equipment $27,500 Accumulated depreciation Building $25,000 Revalued land on acquisition date amounted to $150,000 Share capital $200,000 Required List the assets and liabilities (include totals) that will be included in the acquisition analysis and calculate goodwill At the end of 2020, the CEO advised the CFO that the cash generating unit had a recoverable amount of $240,000 Prepare the general journal entry to reflect this event Show all workings Assume that the carrying amount of the net identifiable assets is $290,000 Goodwill was impaired during the first year of acquisition by $10,000 and at the end of the acquisition year, the cash generating unit had a recoverable amount of $310,000 Prepare the general journal entry to account for goodwill at the end of the acquisition year

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Banana Ltd acquired all of the net assets of Orange Ltd on 1 July 2020. The consideration paid totalled $350,000. On the date of acquisition,

Banana Ltd acquired all of the net assets of Orange Ltd on 1 July 2020. The consideration paid totalled $350,000. On the date of acquisition, Orange Ltd had the following assets and liabilities on their balance sheet: Accounts receivable $2,500; Equipment $100,000, Buildings $100,000; Land at cost $100,000; Long-term loan payable 1 July 2020 $10,000; Accumulated depreciation Equipment $27,500; Accumulated depreciation Building $25,000; Revalued land on acquisition date amounted to $150,000; Share capital $200,000.

Required:

List the assets and liabilities (include totals) that will be included in the acquisition analysis and calculate goodwill.
At the end of 2020, the CEO advised the CFO that the cash generating unit had a recoverable amount of $240,000. Prepare the general journal entry to reflect this event. Show all workings.
Assume that the carrying amount of the net identifiable assets is $290,000. Goodwill was impaired during the first year of acquisition by $10,000 and at the end of the acquisition year, the cash generating unit had a recoverable amount of $310,000. Prepare the general journal entry to account for goodwill at the end of the acquisition year.