Question
Cash LUMS Co. $675,000 SDSB Co. $22,500 Inventories 450,000 45,000 Property and equipment (net) 1,125,000 157,000 Total Assets $2,250,000 $225,000 Current Liabilities $135,000 $22,500 Ordinary
|
Cash | LUMS Co.
$675,000 | SDSB Co.
$22,500 |
| Inventories | 450,000 | 45,000 |
| Property and equipment (net) | 1,125,000 | 157,000 |
| Total Assets | $2,250,000 | $225,000 |
|
Current Liabilities |
$135,000 |
$22,500 |
| Ordinary Shares, $100 par | 225,000 | 22,500 |
| Share Premium | 675,000 | 45,000 |
| Retained Earnings | 1,215,000 | 135,000 |
| Total Assets and SHE | $2,250,000 | $225,000 |
The fair value of SDSB Companys equipment is $226,500.
- Assuming LUMS Company acquired 90% of the outstanding shares of SDSB Company for $450,500 and NCI is measured at fair value, how much is the total consolidated assets on the date of acquisition? (5 marks)
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Fundamentals of Cost Accounting
Authors: William Lanen, Shannon Anderson, Michael Maher
5th edition
978-1259728877, 1259728870, 978-1259565403
