Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribedsecond 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 date

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Organizing Smart Buildings And CitiesPromoting Innovation And Participation

Authors: Elisabetta Magnaghi, VĂ©ronique Flambard, Daniela Mancini, Julie Jacques, Nicolas Gouvy

10th Edition

3030606066, 9783030606060

More Books

Students also viewed these Accounting questions

Question

What does AUC stand for?

Answered: 1 week ago

Question

Why do some people resist change?

Answered: 1 week ago

Question

6 What is the balanced scorecard method?

Answered: 1 week ago