Part A Consolidation Non-Controlling Interestr Sunshine Ltd acquired 85% of the shares (ex div) of Rain Ltd on 1 July 2020 for $400 000. At this date, the equity of Rain Ltd consisted of: Share capital $ 190 000 Asset Revaluation Reserve 60 000 Retained earnings 70 000 At acquisition date all the identifiable assets and liabilities of Rain Ltd were recorded at amounts equal to fair value except the following: Carrying Amount Fair value 30 000 35 000 Inventory Patent 85 000 95 000 Equipment (cost 100 000) 80 000 90 000 Equipment was depreciated at 10% using straight line method. On 30 June 2022, the equity of Rain consisted of. Share capital $190 000 Asset Revaluation Reserve 100 000 Retained earnings 120 000 During the 2021-2022 year Rain Ltd recorded a profit of $60 000. Dividend payable $40 000 Required PART A Calculate the Acquisition Analysis assuming Sunshine uses the Partial Goodwill method. Show all workings.

Part A Consolidation Non-Controlling Interestr Sunshine Ltd acquired 85% of the shares (ex div) of Rain Ltd on 1 July 2020 for $400 000. At this date, the equity of Rain Ltd consisted of: Share capital $ 190 000 Asset Revaluation Reserve 60 000 Retained earnings 70 000 At acquisition date all the identifiable assets and liabilities of Rain Ltd were recorded at amounts equal to fair value except the following: Carrying Amount Fair value 30 000 35 000 Inventory Patent 85 000 95 000 Equipment (cost 100 000) 80 000 90 000 Equipment was depreciated at 10% using straight line method. On 30 June 2022, the equity of Rain consisted of. Share capital $190 000 Asset Revaluation Reserve 100 000 Retained earnings 120 000 During the 2021-2022 year Rain Ltd recorded a profit of $60 000. Dividend payable $40 000 Required PART A Calculate the Acquisition Analysis assuming Sunshine uses the Partial Goodwill method. Show all workings.

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter7: Corporations: Reorganizations

Section: Chapter Questions

Problem 23P

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