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Required: (a) Calculate the goodwill arising on the acquisition of Crosby. (b) Prepare the consolidated statement of profit or loss for Bing for the year

Required:

(a) Calculate the goodwill arising on the acquisition of Crosby.

(b)Prepare the consolidated statement of profit or loss for Bing for the year ended 31 October

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The summarised statements of profit or loss of Bing and Crosby, for the year ended 31 October 2021, are provided below. Bing acquired 3,600,000 ordinary shares in Crosby for $5,250,000 on 1 November 2020 when the retained earnings of Crosby were $300,000. On the same date, Bing also acquired 40% of Crosby's loan notes of $400,000. The f. (1) Crosby's total share capital consists of 6,000,000 ordinary shares of $1 each. (2) It is group policy to value the non-controlling interest at fair value. The fair value of the noncontrolling interest at the acquisition date was $3,200,000. (3) During the year ended 31 October 2021, Bing sold goods costing $200,000 to Crosby for $300,000. At 31 October 2021, 50% of these goods remained in Crosby's inventory. Required: (a) Calculate the goodwill arising on the acquisition of Crosby. (b) Prepare the consolidated statement of profit or loss for Bing for the yeai

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