Alex Ltd. Is taken over by Billy Ltd. On the following terms: The assets and liabilities of Alex Ltd, shall be valued at P3,000,000 and P1,000,000. P5,000 shall be paid in cash and the balance of consideration shall be discharged by issue of shares of P10 each at a premium of 50%. Show the Calculation of purchase consideration and state the number of shares issued to the shareholders of Alex Ltd.
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- Rohit Ltd. Purchased assets worth Re. 41,80,000 from Bhuvnesh IndustrialCorporation and issued equity shares of Re. 100 each, fully paid , in satisfaction of the purchase consideration. Pass necessary Journal entries in the books of RohitLtd. Assuming that shares were issued:a.) at par; b.) at a premium of 10%;c.) at a discount of 5%On 1 July 2019, Quick Buck Ltd took control of the assets and liabilities of Eldorado Ltd. Quick Buck Ltdissued 80,000 shares having a fair value of $2.40 per share in exchange for the net assets of EldoradoLtd. The costs of issuing the shares by Quick Buck Ltd cost $1,600.At this date the statement of financial position of Eldorado Ltd was as follows: c Carrying amount Fair valueMachinery $40,000 $67,000Fixtures & fittings 60,000 68,000Vehicles 35,000 35,000 Current assets 10,000 12,000Current liabilities (16,000) (18,000)Total net assets…Katipunan Company has financial liability (accounted under amortized cost) with face amount of P5,000,000 and a carrying amount of P4,800,000. In addition, there is an unpaid interest of P250,000, accrued. The creditor agreed to the settlement of the bonds payable in exchange for 50,000 shares of P50 par value. The shares have current market value of P4,500,000. How much should be recorded as additional share premium as a result of the extinguishment of the liability?
- Trifles Ltd acquired 280,000 shares in Bamburg Ltd on 01 July 2019 and as a resultTrifles Ltd has a control of 80% in Bamburg. The purchased consideration transferredby Trifles Ltd in exchange of the shares in Bamburg Ltd was as follows: (i) (ii) (iii) Cash paid of $ 565,000Cash to be paid in four year time is $ 500,000Share exchange of two shares in Trifles Ltd for every seven shares inBamburg Ltd. The market price of Trifles Ltd at the date of acquisition was$ 3. The par value of Trifles Ltd’ ordinary shares is $ 0.5 each. Legal fees associated with the acquisition were $ 75,000.The cost of capital of Trifles Ltd is 15%.a) Calculate the fair value of the consideration to acquire control of BamburgLtd at the acquisition date. Bamburg Ltd’s retained earnings at the date of acquisition was $ 135,000. Noordinary shares were issued/ redeemed by the subsidiary since acquisition. Thegroup used the proportion of the net assets of the subsidiary company tomeasure non-controlling…Trifles Ltd acquired 280,000 shares in Bamburg Ltd on 01 July 2019 and as a result Trifles Ltd has a control of 80% in Bamburg. The purchased consideration transferred by Trifles Ltd in exchange of the shares in Bamburg Ltd was as follows:(i) Cash paid of $ 565,000(ii) Cash to be paid in four year time is $ 500,000(iii) Share exchange of two shares in Trifles Ltd for every seven shares in Bamburg Ltd. The market price of Trifles Ltd at the date of acquisition was $ 3. The par value of Trifles Ltd’ ordinary shares is $ 0.5 each.Legal fees associated with the acquisition were $ 75,000.The cost of capital of Trifles Ltd is 15%. Assume that Trifles Ltd has only recorded the cash transaction of $ 565,000. Prepare the consolidated Statement of Financial Position (Equity and Liabilities section only) to show how the deferred consideration and the share exchange should be accounted for the year ended 30 June 2020.Trifles Ltd acquired 280,000 shares in Bamburg Ltd on 01 July 2019 and as a result Trifles Ltd has a control of 80% in Bamburg. The purchased consideration transferred by Trifles Ltd in exchange of the shares in Bamburg Ltd was as follows: (i) Cash paid of $ 565,000 (ii) Cash to be paid in four year time is $ 500,000 (iii) Share exchange of two shares in Trifles Ltd for every seven shares in Bamburg Ltd. The market price of Trifles Ltd at the date of acquisition was $ 3. The par value of Trifles Ltd’ ordinary shares is $ 0.5 each. Legal fees associated with the acquisition were $ 75,000. The cost of capital of Trifles Ltd is 15%. a) Calculate the fair value of the consideration to acquire control of Bamburg Ltd at the acquisition date.