Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Cost of 70% of Simon 910,000 Implied value of 100% of Simon 1,300,000 Carrying amount of Simon Ordinary shares 550,000 Retained earnings Jan. 1 400,000
Cost of 70% of Simon 910,000 Implied value of 100% of Simon 1,300,000 Carrying amount of Simon Ordinary shares 550,000 Retained earnings Jan. 1 400,000 Profit to April 1 ( 200,000) 50,000 1,000,000 Acquisition differential 300,000 Allocated: FV - CA -0- Balance - broadcast rights 300,000 Cost of 60% of Fraser 600,000 Implied value of 100% of Fraser 1,000,000 Carrying amount of Fraser Ordinary shares 300,000 Retained earnings Jan. 1 300,000 Profit to April 1 ( 150,000) 37,500 637,500 Acquisition differential 362,500 Allocated FV - CA -0- Balance - broadcast rights 362,500 Closing inventory profits Before Tax After tax 40% tax Simon selling 32,000 12,800 19,200 Princeton selling 18,000 7,200 10,800
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started