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Please the solution be clear during the shooting, please advanced Accounting On 1/1/2009, Al-Etihad Company acquired all the shares of Al-Hikma Company through the issuance
Please the solution be clear during the shooting, please
On 1/1/2009, Al-Etihad Company acquired all the shares of Al-Hikma Company through the issuance of 11,000 shares, with a nominal value of 1 dinars per share. Note that the market value of the shares of the Union amounted to 17 dinars. On that date, the book value of the subsidiary was 120,000 dinars. Note that the book value of the subsidiary company is equal to the market value, except for the equipment, which recorded a value less than the market value of 6000 dinars (the remaining life of the equipment is 5 years). If you know that any increase between the purchase price (CT) and the fair value (FV) of the assets and liabilities of the subsidiary is due to an unregistered patent that is amortized over 10 years, If you know that the Union Company and Al-Hikma Company, during the years 2009 and 2010 following the acquisition process, recorded in their books the following: Al-Hikma Company Al-Etihad Company 2010 2009 2010 2009 Year 336000 276000 840000 720000 Revenues 180000 144000 552000 528000 Expenses 50000 60000 110000 100000 Dividend If you know that the parent company is using the equity method to record changes to h/investment in the subsidiary company In the periods following the acquisition Required: 1. Determining the balance of h/investment at the end of 2010. 2. Determine the balance of the combined patent. 3. Consolidated net income balance for the year 2010 advanced Accounting
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