On 1 January 20X3 Westbridge acquired all of Brookfield's 100,000 $1 shares for $300,000. The goodwill acquired in the business combination was $40,000, of which 50% had been written off as impaired by 31 December 20X5. On 31 December 20X5 Westbridge sold all of Brookfield's shares for $450,000 when Brookfield had retained earnings of $185,000. What is the profit on disposal that should be included in the individual entity financial statements of Westbridge?
On 1 January 20X3 Westbridge acquired all of Brookfield's 100,000 $1 shares for $300,000. The goodwill acquired in the business combination was $40,000, of which 50% had been written off as impaired by 31 December 20X5. On 31 December 20X5 Westbridge sold all of Brookfield's shares for $450,000 when Brookfield had retained earnings of $185,000. What is the profit on disposal that should be included in the individual entity financial statements of Westbridge?
Chapter14: Choice Of Business Entity—operations And Distributions
Section: Chapter Questions
Problem 68IIP
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On 1 January 20X3 Westbridge acquired all of Brookfield's 100,000 $1 shares for $300,000. The
acquired in the business combination was $40,000, of which 50% had been written off as impaired by 31
December 20X5. On 31 December 20X5 Westbridge sold all of Brookfield's shares for $450,000 when
Brookfield had
What is the profit on disposal that should be included in the individual entity financial statements of
Westbridge?
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