XYZ Ltd acquires 100 per cent of Red-X Ltd on 1 July 2021. XYZ Ltd pays the

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XYZ Ltd acquires 100 per cent of Red-X Ltd on 1 July 2021. XYZ Ltd pays the shareholders of Red-X Ltd the following consideration: Cash 70000 Plant and equipment fair value $250000; carrying amount in the books of ABC ltd. $170000 Land fair value $300000; carrying amount in the books of ABC Ltd. $200000 There are also legal fees of S190 000 involved in acquiring Red-X Ltd. On 1 July 2021 Red-X Ltd's statement of financial position shows total assets of $300 000 and liabilities of $3000 000. The fair value of the assets is $800 000. Required: Has any goodwill been acquired and, if so, how much? And discuss the potential for including associated legal fees into the cost of acquiring Red-X using appropriate accounting standard

Posted Date: Jun 25, 2024 08:49 PM

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XYZ Ltd acquires 100 per cent of Red-X Ltd on 1 July 2021. XYZ Ltd pays the

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