Question
On 1 July 2015 Sarah Ltd acquires all the shares in Jane Ltd for $857,000 cash The financial statements of Jane Ltd as at 1
On 1 July 2015 Sarah Ltd acquires all the shares in Jane Ltd for $857,000 cash The financial statements of Jane Ltd as at 1 July 2015 shows the following:
Retained earnings 164,000
Share capital 184,000
The tax rate is 30%
At the date of acquisition all the net assets of Jane Ltd are at fair value except for the following:
| Carrying Amount | Fair Value | |
| Land | $188,000 | $231,000 |
| Equipment (cost $211,000) | $197,000 | $267,000 |
Calculate and enter the amount of goodwill for the acquisition analysis in the answer block below:
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
Accounting For Managers Financial Accounting
Authors: Morusu Sivasankar
1st Edition
6200624909, 978-6200624901
