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second parts need answers from first part Maxix Ltd purchased all the issued shares of Somix Ltd for $1177000 on 1 July 2020 when the
second parts need answers from first part
Maxix Ltd purchased all the issued shares of Somix Ltd for $1177000 on 1 July 2020 when the equity of Somix Ltd was as follows; 470800 Share capital Asset revaluation surpluss Retained earnings 353100 176550 At this date, Somix Ltd had not recorded any goodwill, and all identifiable assets and liabilities were recorded at fair value except for the followings; Account Further life(Years) Inventories Land Vehicle Fair value $38,800 $97,000 $131,000 10 Cost Carrying Amount $35,300 $88,000 $136,250 $109,000 Somix Ltd identified at acquisition date a lawsuit where Somix Ltd was sued by a former supplier with the Fairvalue of: Somix Ltd had unrecorded and internally generated Patent with the FairValue of: Contingent Liability $14,000 Unrecorded Asset $35,000 Unrecorded Asset Somix Ltd had unrecorded and internally generated in- process research and development with the FairValue of: $26,000 Tax rate:30%. Required 1.Prepare the acquisition analysis at acquisition date. 2.Prepare the business combination valuation entries and the pre-acquisition entry at acquisition date. 3.Prepare worksheet adjusting journal entries for the consolidation on 30 June 2021, considering 40% of inventory were sold by 30 June 2021 and no other changes in Somix's equity since the acquisition date. Maxix Ltd purchased all the issued shares of Somix Ltd for $1177000 on 1 July 2020 when the equity of Somix Ltd was as follows; 470800 Share capital Asset revaluation surpluss Retained earnings 353100 176550 At this date, Somix Ltd had not recorded any goodwill, and all identifiable assets and liabilities were recorded at fair value except for the followings; Account Further life(Years) Inventories Land Vehicle Fair value $38,800 $97,000 $131,000 10 Cost Carrying Amount $35,300 $88,000 $136,250 $109,000 Somix Ltd identified at acquisition date a lawsuit where Somix Ltd was sued by a former supplier with the Fairvalue of: Somix Ltd had unrecorded and internally generated Patent with the FairValue of: Contingent Liability $14,000 Unrecorded Asset $35,000 Unrecorded Asset Somix Ltd had unrecorded and internally generated in- process research and development with the FairValue of: $26,000 Tax rate:30%. Required 1.Prepare the acquisition analysis at acquisition date. 2.Prepare the business combination valuation entries and the pre-acquisition entry at acquisition date. 3.Prepare worksheet adjusting journal entries for the consolidation on 30 June 2021, considering 40% of inventory were sold by 30 June 2021 and no other changes in Somix's equity since the acquisition dateStep by Step Solution
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