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When Company Roo buys all the outstanding stock of Company Road-Runner for $500,000, company Road-Runner had Net Income of $150,000 and paid dividends of $11,000.

When Company Roo buys all the outstanding stock of Company Road-Runner for $500,000, company Road-Runner had Net Income of $150,000 and paid dividends of $11,000. The valuation method used is the acquisition method.

What is the journal entry to be shown on the parents' books, Company Roo?

Explain precisely what extraordinary items are and then the reasoning of why the IFRS does not allow them?

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