P Ltd acquired control with the acquisition of an 80% interest in S Ltd for R1 100 000 on I January 2008. On this date theshare capital of S Ltd was R200 000 consisting of 200 000 ordinary shares and the retained earnings amounted toR800 000. The fair value of the net assets of S Ltd amounted to R1 000 000 on 1 January 2008 Non- controlling interests in the acquire are measured as the Non-controlling interest’s proportionate share of theacquiree’s net identifiable assets How much goodwill will be attributable to the Non-controlling interest at acquisition? Select one: a. RNIL b. R60 000 c. R200 000 d.

P Ltd acquired control with the acquisition of an 80% interest in S Ltd for R1 100 000 on I January 2008. On this date theshare capital of S Ltd was R200 000 consisting of 200 000 ordinary shares and the retained earnings amounted toR800 000. The fair value of the net assets of S Ltd amounted to R1 000 000 on 1 January 2008 Non- controlling interests in the acquire are measured as the Non-controlling interest’s proportionate share of theacquiree’s net identifiable assets How much goodwill will be attributable to the Non-controlling interest at acquisition? Select one: a. RNIL b. R60 000 c. R200 000 d.

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter20: Corporations: Distributions In Complete Liquidation And An Overview Of Reorganizations

Section: Chapter Questions

Problem 38P

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P Ltd acquired control with the acquisition of an 80% interest in S Ltd for R1 100 000 on I January 2008. On this date the share capital of S Ltd was R200 000 consisting of 200 000 ordinary shares and the retained earnings amounted to R800 000. The fair value of the net assets of S Ltd amounted to R1 000 000 on 1 January 2008 Non- controlling interests in the acquire are measured as the Non-controlling interest’s proportionate share of the acquiree’s net identifiable assets How much will be recognised as goodwill in the pro forma consolidation at acquisition? Select one: a. R300 000 b. R200 000 c. R240 000 d. R800 000
P Ltd acquired control with the acquisition of an 80% interest in S Ltd for R1 100 000 on I January 2008. On this date the share capital of S Ltd was R200 000 consisting of 200 000 ordinary shares and the retained earnings amounted to R800 000. The fair value of the net assets of S Ltd amounted to R1 000 000 on 1 January 2008 Non- controlling interests in the acquire are measured as the Non-controlling interest’s proportionate share of the acquiree’s net identifiable assets How much is the Non-controlling interest? Select one: a. R160 000 b. R200 000 c. R40 000 d. R260 000
On 1 June 2013, Sun Ltd acquired 75% interest (and control) over Savy Ltd by acquiring 570 000 of the issued ordinary shares of Savy Ltd. The consideration paid was settled in cash amounting to R810 000. On this date the retained earnings of Savy Ltd amounted to R125 000 and 760 000 ordinary shares worth R950 000. The Sun Ltd Group measures non-controlling interests in an acquiree at its proportional share of the aquiree’s identifiable net assets at acquisition date (partial goodwill method). Calculate the amount of goodwill. Select one: a. R3 750 b. R2 000 c. RNIL d. R272 500
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On 1 July 2020 Harry Ltd purchased 70 per cent of the issued share capital of Wills Ltd and has control of Wills. The fair value of the net assets of Wills Ltd on that date was represented as follows: Share Capital $1,800,000 Retained 400,000 2,200,000 Harry Ltd paid cash consideration of $2,000,000 for Wills. Wills Ltd made an operating profit of $450,000, there were no intragroup transactions during the period ended 30 June 2021. Goodwill had been determined to have been impaired during the year by $45,000. What consolidation journal entries are required for the period and what is the non-controlling interest in equity as at 30 June 2021?
On 1 January 2011, Berardo Ltd acquired 25% of the ordinary issued share capital of Ricky Ltd for $750 000. This investment gave rise to significant influence. The share capital and reserves of Ricky Ltd at 1 January 2011 were: Share capital 800,000 General reserve 500,000 Retained earnings 550,000 Total 1,850,000 All the identifiable net assets of Ricky Ltd were stated at fair value at the date of acquisition except for a building whose carrying value was $100 000 less than the fair value. Implicit goodwill arising on Berardo's acquisition of Ricky was: A) $262,500 B) $270,000 C) $287,500 D) $300,000