Question
Company Limited purchased S Limited for the purchase consideration of: Cash $11 per S Ltds share Shares in M Company Limited 20000 shares with market
Company Limited purchased S Limited for the purchase consideration of:
Cash | $11 per S Ltds share |
Shares in M Company Limited | 20000 shares with market value of $12 |
Non-current asset | Carrying Value $30000 Fair Value $49000 |
M Company Limited incurred legal fees of $9000 to complete the acquisition.
S Limited had the following assets and liabilities at the time of purchase:
| Carrying amount ($) | Recoverable amount ($) | Fair value ($) |
Assets |
|
|
|
Land | 454000 | 488000 | 504000 |
Machinery | 317000 | 359000 | 385000 |
Inventory | 310000 | 286000 | 364000 |
Cash | 159000 |
|
|
Liabilities |
|
|
|
Loan | 386000 |
|
|
Share Capital (92000 shares) | 854000 |
|
|
Calculate and enter the amount of goodwill
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