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On 1 July 2016, A Ltd acquired 80% of the issued shares of B Ltd for $190 000. At this date, the equity of B Ltd was:   Share capital General reserve Retained earnings   $ 100 000 50 000 60 000   At acquisition date . At 30 June 2018, the equity of B Ltd consisted of:   Share capital General reserve Retained earnings   $ 100 000 70 000 90 000

On 1 July 2016, A Ltd acquired 80% of the issued shares of B Ltd for $190 000. At this date, the equity of B Ltd was:   Share capital General reserve Retained earnings   $ 100 000 50 000 60 000   At acquisition date . At 30 June 2018, the equity of B Ltd consisted of:   Share capital General reserve Retained earnings   $ 100 000 70 000 90 000

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
Problem 24E
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On 1 July 2016, A Ltd acquired 80% of the issued shares of B Ltd for $190 000. At this date, the equity of B Ltd was:

 

Share capital

General reserve

Retained earnings

 

$ 100 000

50 000

60 000

 

At acquisition date

. At 30 June 2018, the equity of B Ltd consisted of:

 

Share capital

General reserve

Retained earnings

 

$ 100 000

70 000

90 000

 

During the 2017–18 year B Ltd recorded a profit of $20 000. At 1 July 2016, the fair value of the non-controlling interest was $45 000 and A Ltd adopts the full goodwill method.

 

 

Required:  Prepare the acquisition analysis (without any consolidation entries)                                                              please answer complete and working note

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