Question
Super Ltd acquired 65% of Car Ltd for a cost of $650,000, when the equity of Car Ltd consisted of: Share Capital General Reserve Retained
Super Ltd acquired 65% of Car Ltd for a cost of $650,000, when the equity of Car Ltd consisted of:
Share Capital
General Reserve
Retained Earnings
$100,000
$8.000
$20.000
All the identifiable assets and liabilities of Car Ltd were recorded at fair value except for the following:
Vehicles (cost $550,000)
Patent
Carrying
Amount
$450.000
$70,000
Fair
Value
$500.000
$90,000
Super Ltd acquired 65% of Car Ltd for a cost of $650,000, when the equity of Car Ltd consisted
Share Capital
General Reserve
Retained Earnings
$100.000
$8.000
$20,000
?
All the identifiable assets and liabilities of Car Ltd were recorded at fair value except for the following:
Carrying
Amount
$450.000
$70.000
Eair
Value
$500.000
$90.000
Vehicles (cost $550,000)
Patent
Required:
Prepare the journal entries for the pre-acquisition stage (i.e., Stage 1) of recording the Non-Controlling Interest (NCI) using the partial goodwill method.
Super Ltd acquired 65% of Car Ltd for a cost of $650,000, when the equity of Car Ltd consisted of:
Share Capital
General Reserve
Retained Earnings
$100,000
$8.000
$20.000
All the identifiable assets and liabilities of Car Ltd were recorded at fair value except for the following:
Vehicles (cost $550,000)
Patent
Carrying
Amount
$450.000
$70,000
Fair
Value
$500.000
$90,000
Super Ltd acquired 65% of Car Ltd for a cost of $650,000, when the equity of Car Ltd consisted
Share Capital
General Reserve
Retained Earnings
$100.000
$8.000
$20,000
?
All the identifiable assets and liabilities of Car Ltd were recorded at fair value except for the following:
Carrying
Amount
$450.000
$70.000
Eair
Value
$500.000
$90.000
Vehicles (cost $550,000)
Patent
Required:
Prepare the journal entries for the pre-acquisition stage (i.e., Stage 1) of recording the Non-Controlling Interest (NCI) using the partial goodwill method.
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Advanced Accounting
Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng
11th edition
538480289, 978-0538480284
