Question
On 1 July 2019, ABC Ltd acquired all the issued shares of XYZ Ltd for $250,000. At this date, the equity of XYZ Ltd consisted
On 1 July 2019, ABC Ltd acquired all the issued shares of XYZ Ltd for $250,000. At this date, the equity of XYZ Ltd consisted of:
Share capital
$ 150,000
General reserve
30,000
Retained earnings
50,000
All the identifiable assets and liabilities of XYZ Ltd were recorded at amounts equal to their fair values except for:
Carrying amount
Fair value
Land
250,000
280,000
Inventory
30,000
40,000
The tax rate is 30%.
Required: Prepare an acquisition analysis at 1 July 2019 by ABC Ltd
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Introduction To Management Accounting A User Perspective
Authors: Michael L Werner, Kumen H Jones
2nd Edition
0130327506, 9780130327505
