Question
On 1 July 2014 Chloe Ltd acquired all the shares in Lola Ltd for $955,000. At this date the shareholders equity of Lola Ltd consisted
On 1 July 2014 Chloe Ltd acquired all the shares in Lola Ltd for $955,000. At this date the shareholders equity of Lola Ltd consisted of
| Share capital | $225,000 |
| General reserve | $196,000 |
| Retained earnings 1/7/2014 | $205,000 |
At 1 July 2014, the carrying amounts of all identifiable assets of Lola Ltd were equal to fair value with one exception. An item of Plant has a cost of $125,000 and an accumulated depreciation of $52,000 but a fair value of $145,000. At 1 July 2014 the plant has a useful life of 7 years and is depreciated on the straight line basis. Lola Ltd uses the cost basis to measure Plant.
An impairment loss of $88,000 relating to goodwill arising from the acquisition of Lola Ltd was recognised during the year ended 30 June 2015.
Calculate and enter the amount of goodwill in the answer block below:
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Statistical Sampling And Risk Analysis In Auditing
Authors: Peter Jones
1st Edition
1138263214, 978-1138263215
