statements of financial position of the companies immediately after the acquisition were as followsProblem 12.20 (Goodwill)Joplin Ltd acquired 100% of the issued capital of Hendrix Ltd on 1 July 20X0 for $290 000. The(all assets stated at their fair values):Statements of Financial Position for the year ended 1 July 20X0Joplin Ltd24Hendrix Ltd%24Shareholders' equityShare capital400 000200 000General reserve40 00020 000Retained earnings30 000120 000560 000Total shareholders' equity250 000AssetsCurrent assets130 00055 000Investment in D Ltd290 000310 000365 000Other non-current assets455 000Total assets875 000LiabilitiesCurrent liabilities145 00035 000Non-current liabilities170 00080 000Total liabilities315 000115 000560 000250 000Net assets

Total Assets of Hendrix Ltd = 3,65,000 Less : Liabilities for aquisition = (1,15,000)…

statements of financial position of the companies immediately after the acquisition were as follows- Joptin Ltd acquired 100% of the issued capital of Hendrix Ltd on 1 July 20X0 for $290 000. The (all assets stated at their fair values): Statements of Financial Position for the year ended 1 July 20X0 Hendrix Ltd Joplin Ltd 2$ Shareholders' equity Share capital General reserve Retained earnings 400 000 200 000 40 000 20 000 120 000 30 000 Total shareholders' equity 560 000 250 000 Assets Current assets 130 000 55 000 Investment in D Ltd 290 000 310 000 455 000 875 000 Other non-current assets Total assets 365 000 Liabilities Current liabilities 145 000 35 000 Non-current liabilities 170 000 80 000 Total liabilities 315 000 115 000 560 000 250 000 Net assets

statements of financial position of the companies immediately after the acquisition were as follows- Joptin Ltd acquired 100% of the issued capital of Hendrix Ltd on 1 July 20X0 for $290 000. The (all assets stated at their fair values): Statements of Financial Position for the year ended 1 July 20X0 Hendrix Ltd Joplin Ltd 2$ Shareholders' equity Share capital General reserve Retained earnings 400 000 200 000 40 000 20 000 120 000 30 000 Total shareholders' equity 560 000 250 000 Assets Current assets 130 000 55 000 Investment in D Ltd 290 000 310 000 455 000 875 000 Other non-current assets Total assets 365 000 Liabilities Current liabilities 145 000 35 000 Non-current liabilities 170 000 80 000 Total liabilities 315 000 115 000 560 000 250 000 Net assets

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 30E

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