JUST QUESTION 2 PLEASE

itS URGENT

. . . X -2- Question 2 Required: On September 1, 2017, Spike Limited decided to buy 100% of the outstanding shares of Volley A. Determine the amount of goodwill (i.e measure) that will be recorded on the business Inc. for $1,200,000, paid for with the issuance of shares. Acquisition costs for the deal totaled combination. (10 marks) $30,000: $20,000 related to the issue of the shares and the remaining amount for legal, B. Prepare the consolidated statement of financial position as at September 1, 2017 using valuation, and administrative costs. All of these costs were paid in cash. In addition, Spike has the simplified method. (15 marks) agreed to pay an additional $250,000 if the revenues of Volley have a 5% growth over the next two years from the date of the acquisition It has been determined that the fair value of this contingent consideration is $175,000. Question 3 The balances showing on the statement of financial position for the two companies at August 31, 2017, are as follows: In Canada, we have business and non-business organizations. Spike Volley Asset Cash 45,00 40,000 Required: Accounts receivable 65,009 35,000 In your own words, explain the difference between these two types of organizations. Why Inventory 50.000 80.0 should they be allowed to follow different accounting policies? (10 Marks) Marketable securities 45.00 Property, plant, and equipment-ne 3.390,000 2020.001 1.750.000 Liabilities Question 4 Current liabilities Accounts payable 665,00 280,000 What is a reverse takeover, give an example, and why would a firm do that? (7 marks) Bonds payable 1,350,000 620.000 Shareholders' equity Common shares 1,300,000 250,000 Retained earnings 435.00 50.000 Question 5 3.750.000 .200.000 On December 31, 2020, the condensed balance sheets for BC Limited and PEI Inc. were as follows: After a review of the financial assets and liabilities, Spike determines that some of the assets of Volley have fair values different from their carrying values. These items are listed below: BC Lid PEI Inc. Property, plant, and equipment: fair value is $1,350,000 Assets; Patent: fair value is $255,00 Cash 44,000 80,000 Brand name: fair value is $135,000 Accounts Receivable 480,000 420,000 Inventories 650,000 540,000 Property Plant & Equipment 2,610,000 870,000 Accumulated Depreciation 1,270,000) (130,000) Total Assets 2,514,000 1,780,000 -3- POOBASEDON ONEWT... 9) New Ta.. ) 2020F . x Abigail.. W ACCT4.. A ENG 2:29 PM 2020-10-23