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The statements of financial position ( SFP ) of AX Inc. and BY Ltd . on December 3 1 , Year - 1 were as

The statements of financial position (SFP) of AX Inc. and BY Ltd. on December 31, Year-1 were
as follows:
On December 31, Year-1 AX acquired shares) of BY'S common shares for $80,000,
plus an agreement to pay an additional $80,000 if the company sales grew by more than 20% over
the next two years. An independent business valuator valued this contingent consideration at
$20,000, had this been paid at the date of acquisition itself. At this date, just before the acquisition
BY's shares were trading for $9 per share.
Additional information - Direct costs of acquisition were $8,000. An unreported new patent by
BY Inc. was valued at $3,000.
Required:
Calculate consolidated goodwill and prepare the consolidated statement of financial
position at the date of acquisition under each of the following:
Identifiable net assets (INA) method
Fair value enterprise (FVE) method
Calculate consolidated goodwill at the date of acquisition under the proportionate
consolidation method.
Prepare the journal entries (ONLY) under the Worksheet approach (FVE Method).
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