FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

MMM company acquired 85% of the ordinary shares of CF Ltd. The net assets were fairly valued on 1 January 2021 except for machinery that

MMM company acquired 85% of the ordinary shares of CF Ltd. The net assets were fairly valued on 1 January 2021 except for machinery that were undervalued by R450 000. The machine was purchased on 1 January 2020 for R1 000 000 and had a useful life of 6 years. No adjustments at acquisition for the above matter. Assume a tax rate of 28% REQUIRED: Prepare the journal entries (with narrations) for the year ended 31 December 2022

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image
Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting An Introduction
Accounting An Introduction

Authors: Eddie McLaney, Peter Atrill

3rd Edition

0273688227, 978-0273688228

More Books

Students explore these related Accounting questions

Question

Calculating Expected Return Based on the following information, calculate the expected return: Probability of State of Economy State of Rate of Return if Economy State Occurs 25 -05 Recession .40 .12...

Answered: 3 weeks ago

Question

How important is the valuation assertion for cash equivalents? Why?

Answered: 3 weeks ago

Question

1. Use some system to make sure you give each student practice in reading, speaking, and answering questions.

Answered: 3 weeks ago

Question

Pol Corporation purchased a 90 percent interest in San Corporation on December 31, 2010, for $2,700,000 cash, when San had capital stock of $2,000,000 and retained earnings of $500,000. All San's...

Answered: 3 weeks ago

Question

Please write in Java not C Affine Cipher An affine cipher is an old encryption scheme that encrypts messages using the following function: ek(x) = (ax + b) mod n Where n is an integer representing...

Answered: 3 weeks ago

Question

Firefox File Edit View History Bookmarks Tools Window Help X 28 37% Thu 9:48 AM . . . A HW 4 - MAT 135, section F20-N X + C O &...

Answered: 3 weeks ago

Question

Overview You are an accountant for the Crestview Financial Services firm. You have been examining financial statements for a client called LMS Manufacturing Corporation. You recently discovered key...

Answered: 3 weeks ago

Question

Figuring out how to frame things comes from asking yourself the question, firm grasp of the obvious is something that great negotiators are able to do. O "What is really going on here?" O "Has your...

Answered: 3 weeks ago

Question

Which one of the following depends on the risk control function to provide a clear profile of the applicant's loss exposures and related hazards? Available answer options Select only one option A...

Answered: 3 weeks ago

Question

If Neon Lights, LLC has gross receipts of $25 million for the taxable year, they will not be considered an SSTB if less than what percentage of their gross receipts are attributable to an SSTB...

Answered: 3 weeks ago

Question

The CFO of Spotify Inc. has summarized its free cash flows for the next three years in the following table. The cash flows are expected to grow at a constant growth rate 2.00% afterwards. The company...

Answered: 3 weeks ago

Question

=+With different benefits? Can you inspire user-generated content and:

Answered: 3 weeks ago

Question

=+will appear. Make sure it's portable. Ask yourself:

Answered: 3 weeks ago

Question

=+What other ideas could you use? Did you consider an alternative message:

Answered: 3 weeks ago

Previous Question Next Question