Boldklub Ltd pays $89 million to acquire Nomme Pty Ltd. At the date of acquisition, the directors of Boldklub Ltd determined Nomme Pty Ltd's net assets had a fair value of $75 million. State, in $ millions, the goodwill that Boldklub Ltd would recognise from this event.
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- Buchanan Imports purchased McLaren Corporation for $5,000,000 cash when McLaren had net assets worth $4,500,000. A. What is the amount of goodwill in this transaction? B. What is Buchanans journal entry to record the purchase of McLaren? C. What journal entry should Buchanan write when the company internally generates additional goodwill in the year following the purchase of McLaren?Del Luna Corporation concluded that the fair value of Scarlet Company was P160,000 and paid that amount to acquire all of its net assets. Scarlet reported assets with a book value of P120,000 and a fair value of 196,000 and liabilities with a book value and fair value of P46,000 on the date of combination. Del Luna also paid P6,000 to a search firm for finder’s fees related to acquisition. What amount will be recorded as goodwill by Del Luna Corporation? a. 10,000 b. 26,000 c. 16,000 d. 0Del Luna Corporation concluded that the fair value of Scarlet Company was P160,000 and paid that amount to acquire all of its net assets. Scarlet reported assets with a book value of P120,000 and a fair value of 196,000 and liabilities with a book value and fair value of P46,000 on the date of combination. Del Luna also paid P6,000 to a search firm for finder’s fees related to acquisition. What amount will be recorded as goodwill by Del Luna Corporation? 26,000 0 16,000 10,000
- Ryan Limited acquired 80% of the shares in Tully Limited for $165 000. At acquisition date, share capital in Tully was $120 000 and reserves amounted to $40 000. All assets and liabilities of Tully were recorded at fair value at acquisition date except machinery which was recorded at $20 000 below fair value. The fair value of the NCI at the date of Ryan’s acquisition was $40 000 and the full goodwill method is adopted by the group. If the company tax rate was 30%, the total amount of goodwill recorded in relation to this business combination amounts to: a. $15 000 b. $31 000 c. $5 000 d. $26Pam acquired 80% of the 100 million ordinary shares of San for a cash consideration of RM720 million. The retained profit at that date was RM450 and the fair value of non-controlling interest was RM20 million. Goodwill on acquisition of San of RM16 million. On 1 September 2019, Pam disposed 80% of its interest in San for RM672 million. However, Pam was still able to participate in the financial and operating policy decisions of San through its significant representation on the board. On disposal date, the fair value of the net assets of San was RM1,140 million and the fair value of one ordinary share of San was RM10.40. Goodwill on acquisition of San was previously impaired by 20%. Required: a) Advise Pam the implication on its relationship with San before and after the disposal of 80% of its interest in San, in the context of MFRS 124 Related Party Disclosures and MFRS 10 Consolidated Financial Statements. b) Advise Pam on how the disposal of shares in San should be…Pam acquired 80% of the 100 million ordinary shares of San for a cash consideration of RM720 million. The retained profit at that date was RM450 and the fair value of non-controlling interest was RM20 million. Goodwill on acquisition of San of RM16 million. On 1 September 2019, Pam disposed 80% of its interest in San for RM672 million. However, Pam was still able to participate in the financial and operating policy decisions of San through its significant representation on the board. On disposal date, the fair value of the net assets of San was RM1,140 million and the fair value of one ordinary share of San was RM10.40. Goodwill on acquisition of San was previously impaired by 20%. Required: Advise Pam the implication on its relationship with San before and after the disposal of 80% of its interest in San, in the context of MFRS 124 Related Party Disclosures and MFRS 10 Consolidated Financial Statements. 2. Advise Pam on how the disposal of shares in San should be correctly…
- On September 1, 20Y8, Vernon Corporation acquired Barlow Enterprises for a cash payment of $2,300,000. At the time of acquisition, Barlow's balance sheet showed assets of $1,800,000, liabilities of $600,000, and owner's equity of $1,200,000. A recent appraisal indicated that the fair value of Barlow's assets is estimated to be $2,100,000. How much goodwill was generated due to this acquisition? What is the net dollar value impact this transaction had on assets? What is the net dollar value impact this transaction had on liabilities? What is the net dollar value impact this transaction had on equity?Snowy Ltd acquires Pax Ltd on 1 July 2018 for $5,000,000 being the fair value of the consideration transferred. At that date, Pax Ltd’s net identifiable assets have a fair value of $4,400,000. Goodwill of $600,000 is therefore the difference between the aggregate of the consideration transferred and the net identifiable assets acquired. The fair value of the net identifiable assets of Pax Limited are determined as follows: ($000) Patent rights:- 200 Machinery:- 1000 Buildings:- 1500 Land:- 2300 Total:- 5000 Less: Bank loan:- 5000-600 = 4400 Net assets:- 4400 At the end of the reporting period of 30 June 2019, the management of Snowy Ltd determines that the recoverable amount of the cash-generating unit, which is considered to be Pax Ltd, totals $4,500,000. The carrying amount of the net identifiable assets of Pax Ltd, excluding goodwill, is unchanged and remains at $4,400,000.…Snowy Ltd acquires Pax Ltd on 1 July 2018 for $5,000,000 being the fair value of the considerationtransferred. At that date, Pax Ltd’s net identifiable assets have a fair value of $4,400,000. Goodwill of$600,000 is therefore the difference between the aggregate of the consideration transferred and the net identifiable assets acquired. The fair value of the net identifiable assets of Pax Limited are determined as follows: ($000) Patent rights Machinery Buildings Land Less: Bank loan Net assets 200 1,000 1,500 2,300 5,000 600 4,400 At the end of the reporting period of 30 June 2019, the management of Snowy Ltd determines that the recoverable amount of the cash-generating unit, which is considered to be Pax Ltd, totals $4,500,000. The carrying amount of the net identifiable assets of Pax Ltd, excluding goodwill, is unchanged and remains at $4,400,000. Required: a) Prepare the journal entry to account for any impairment of goodwill. b) Assume instead that at the end of the…
- On January 1, 2024, Cameron Incorporated bought 30% of the outstanding common stock of Lake Construction Company for $330 million cash, giving Cameron the ability to exercise significant influence over Lake’s operations. At the date of acquisition of the stock, Lake's net assets had a fair value of $700 million. Its book value was $600 million. The difference was attributable to the fair value of Lake's buildings and its land exceeding book value, each accounting for one-half of the difference. Lake’s net income for the year ended December 31, 2024, was $110 million. During 2024, Lake declared and paid cash dividends of $20 million. The buildings have a remaining life of 5 years. Record the adjustment for depreciation.On January 1, 2024, Cameron Incorporated bought 30% of the outstanding common stock of Lake Construction Company for $330 million cash, giving Cameron the ability to exercise significant influence over Lake’s operations. At the date of acquisition of the stock, Lake's net assets had a fair value of $700 million. Its book value was $600 million. The difference was attributable to the fair value of Lake's buildings and its land exceeding book value, each accounting for one-half of the difference. Lake’s net income for the year ended December 31, 2024, was $110 million. During 2024, Lake declared and paid cash dividends of $20 million. The buildings have a remaining life of 5 years. Required: Complete the table below and prepare all appropriate journal entries related to the investment during 2024, assuming Cameron accounts for this investment by the equity method. Determine the amounts to be reported by Cameron. 1 Record the investment in Lake Construction shares. 2 Record the…On January 1, 2021, Cameron Inc. bought 20% of the outstanding common stock of Lake Construction Company for $300 million cash, giving Cameron the ability to exercise significant influence over Lake’s operations. At the date of acquisition of the stock, Lake’s net assets had a fair value of $900 million. Its book value was $800 million. The difference was attributable to the fair value of Lake’s buildings and its land exceeding book value, each accounting for one-half of the difference. Lake’s net income for the year ended December 31, 2021, was $150 million. During 2021, Lake declared and paid cash dividends of $30 million. The buildings have a remaining life of 10 years. Required:1. Prepare all appropriate journal entries related to the investment during 2021, assuming Cameron accounts for this investment by the equity method.2. Determine the amounts to be reported by Cameron:a. As an investment in Cameron’s 2021 balance sheet. b. As net investment revenue in the income statement.c.…