Question
On 1 July 2016, A Ltd acquired 80% of the issued shares of B Ltd for $190 000. At this date, the equity of B
On 1 July 2016, A Ltd acquired 80% of the issued shares of B Ltd for $190 000. At this date, the equity of B Ltd was:
| Share capital General reserve Retained earnings |
| $ 100 000 50 000 60 000 |
At acquisition date
. At 30 June 2018, the equity of B Ltd consisted of:
| Share capital General reserve Retained earnings |
| $ 100 000 70 000 90 000 |
During the 201718 year B Ltd recorded a profit of $20 000. At 1 July 2016, the fair value of the non-controlling interest was $45 000 and A Ltd adopts the full goodwill method.
Required: Prepare the acquisition analysis (without any consolidation entries)
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Managerial Accounting An Introduction To Concepts Methods And Uses
Authors: Michael W. Maher, Clyde P. Stickney, Roman L. Weil, Sidney Davidson
7th Edition
0030259630, 978-0030259630
