The amount that will be disclosed as goodwill in the consolidated statement of financial position of the Sun Ltd Group as at 31 December 2015, is_______.
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Q25
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
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
On 31 December 2015, goodwill was tested for impairment and it was determined by the directors of Sun Ltd that the goodwill was impaired with R2 750 at the end of the current financial year.
The amount that will be disclosed as goodwill in the consolidated
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- Q5 On 3 May 2016, Mashego Limited acquired 75% (and control) of Mahlangu Limited’s outstanding ordinary shares for R112 000. The fair value of the non-controlling interest was equal to a proportionate share of the book value of Mahlangu Limited’s net assets at the date of acquisition. The selected balance sheet data for the two companies as at 30 April 2016 are as follows: Mashego Mahlangu Limited Limited R R Total assets 504 000 216 000 Liabilities 144 000 72 000 Ordinary shares 120 000 60 000 Retained earnings 240 000 84 000 Equity & liabilities 504 000 216 000 What amount should be recorded as investment in subsidiary in the separate statement of financial position for Mashego Limited at 30 April 2016? Select one: a. R108 000 b. R112 000 c. R144 000 d. R216 000Q11 On 3 May 2016, Mashego Limited acquired 75% (and control) of Mahlangu Limited’s outstanding ordinary shares for R112 000. The fair value of the non-controlling interest was equal to a proportionate share of the book value of Mahlangu Limited’s net assets at the date of acquisition. The selected balance sheet data for the two companies as at 30 April 2016 are as follows: Mashego Mahlangu Limited Limited R R Total assets 504 000 216 000 Liabilities 144 000 72 000 Ordinary shares 120 000 60 000 Retained earnings 240 000 84 000 Equity & liabilities 504 000 216 000 What amount should be recorded as non-controlling interest in the net assets of Mahlangu Limited in the consolidated statement of financial position of Mashego Limited at 30 April 2016? Select one: a. R90 000 b. R54 000 c. R36 000 d. R108 000On 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
- Hlayisani Ltd acquired 60% of the voting shares of the Mashele Ltd on 31 January 2014 for R65 000 when the items ofequity in the books of Mashele Ltd on that date were retained income of R45 000, revaluation surplus of R10 000 andshare capital of R58 000. Calculate the portion of minority shareholders if any.Select one:a.R45 200b.R27 200c.R67 800d.R41 200N 1 Dwani Ltd acquired all the issued shares (cum div.) of Power Ltd for $653 000 on 1 January 2022. At that date, the equity of Power Ltd was recorded as follows. Share capital $ 400 000 General reserve 88 000 Retained earnings 90 000 On 1 January 2022, the records of Power Ltd showed that the company had previously recorded a goodwill at cost of $15 000. Further, Power Ltd had a dividend payable of $25 000, the dividend to be paid in March 2022. All other assets and liabilities were carried at amounts equal to their fair values at the acquisition date, except some inventories recorded at $20 000 below their fair value. Also, Dwani ltd identified at the acquisition date a patent with a fair value of $45 000 that Power Ltd has not recorded in its own accounts. Required: Prepare the consolidation worksheet entries for Dwani Ltd’s group on 30 June 2022 assuming the consideration transferred was $500 000.HX acquired 100% of SA’s equity shares on 1 July 2010 for R342,000. On 1 July 2010 the property plant and equipment of SA had a fair value of R350,000 and a book value of R325,000. All other assets and liabilities had a fair value approximately equal to their book value. SA has R200,000 R1 equity shares in issue and at 1 July 2010 its reserves comprised share premium of R40,000 and retained earnings of R62,000. Goodwill arising on the acquisition of SA is.
- Alpha Ltd acquired 30% of the voting shares of Beta Ltd on 1 July 2021 for $150 000. This acquisition resulted in Alpha Ltd having significant influence over Beta Ltd. At the date of acquisition, the shareholder’s equity of Beta is as follows: Share capital 350 000 Retained profits 50 000 400 000 The following information relates to Beta Ltd as at 30 June 2022, the end of financial year FY2022: Profit for FY2022 90 000 Dividend paid out of the profit of FY2022 50 000 Asset revaluation reserve 25 000 Additional information: Mu Ltd is 100% owned by Alpha Ltd and is Alpha’s subsidiary. During FY2022, Beta sold $100 000 of inventories to Mu Ltd and made profit of $40 000. As at 30 June 2022, 20% of the inventories were still held by Mu Ltd. Required: a) Prepare journal entries for Alpha Ltd in FY2022 to account for its investment in Beta Ltd using the Equity Method. Use the Reclassification Method to account for the profit and….MoFin LTDOn 10 November 2020, GoMo Ltd purchased 80% (800 shares) of the issued share capital in a new UK company called ‘MoFin Ltd’. GoMo Ltd paid £160,000 for the issued share capital. ‘MoFin” was originally run as a sole-trade by Mr Smith. On 10 November 2020, Mr Smith transferred the business assets in to a newly incorporated company ‘MoFin Ltd’, in return he received £160,000 cash and a 20% shareholding in the company (200 shares). The market value of the net assets Mr Smith transferred to ‘MoFin Ltd’ on incorporation was: Market Value £Internally generated goodwill 60,000Freehold office* 127,000Debtors 25,000CreditorsTotal net assests 200,000*The freehold office was brought March 2011 for £50,000 Mr Smith, (who is 63 and a higher rate taxpayer), remains involved with the business as a part-time director of MoFin Ltd. ) Calculate the capital gains tax Mr Smith will owe to HMRC following the incorporation of ‘MoFin Ltd’ in the tax year 2020/21. Your answer should take into…Hard Ltd acquired 3,200,000of the ordinary shares of Soft Ltd on 1stOctober 2010.The consideration was agreed as follows: GHC5 million immediate cash payment and additional GHC1 million to be settled on 1stOctober 2013. A year later, Hard Ltd acquired 800,000 of the ordinary shares of Active Ltd for GHC1,600,000. The cost of capital to Hard Ltd is 25% per annum. The statements of financial position of the three companies as at 30thSeptember 2012 are as follows: Hard LtdGHC000Soft LtdGHC000Active LtdGHC000Non Current Assets: Patent Freehold land Plant Investments: In Soft Ltd In Active Ltd In others5005,1202,8405,0001,60030015,3608402,8001,800--4005,840-1,6001,080--1202,800Current Assets: Inventories Accounts receivable Bank 1,140840-__1,9808007603001,8606008002401,640Current Liabilities: Accounts payable Taxation Bank overdraft 1,1006801601,940660240-900560120-680NetCurrent Assets Deferred tax Net assets Equity: Stated capital Ordinary shares (issued at GHC0.50)Capital surplus Income…
- Q4) Giant ltd acquired 80 percent share capital of Expert ltd. On July 2018 for a cost of $1,600,000. As at the date of acquistion, all the assets and liabilities of Expert ltd were fairly valued except a land that has a carrying value $150,000 less than the fair value. The recorded balance of equity of Expert ltd as at 1 July 2018 were as: Share capital $800,000 Retained earnings $200,000 General reserve $400,000 Total $1,400,000 Additional information: (i) The management of Giant ltd values non-controlling interest at the proportionate share of Expert ltd identifiable net assets. (ii) Expert ltd has a profit after tax of $200,000 for the year ended 30 June 2019. (iii) During the financial year to 30 June 2019, Expert ltd sold inventory to Giant ltd for a price of $120,000. The inventory costs Expert ltd $60,000 to produce. 25 percent of the inventory are still on the hand of Giant ltd as at 30 June 2019. (iv) During…ccounting Alpha Ltd acquired 30% of the voting shares of Beta Ltd on 1 July 2021 for $150 000. This acquisition resulted in Alpha Ltd having significant influence over Beta Ltd. At the date of acquisition, the shareholder’s equity of Beta is as follows: Share capital 350 000 Retained profits 50 000 400 000 The following information relates to Beta Ltd as at 30 June 2022, the end of financial year FY2022: Profit for FY2022 90 000 Dividend paid out of the profit of FY2022 50 000 Asset revaluation reserve 25 000 Additional information: Mu Ltd is 100% owned by Alpha Ltd and is Alpha’s subsidiary. During FY2022, Beta sold $100 000 of inventories to Mu Ltd and made profit of $40 000. As at 30 June 2022, 20% of the inventories were still held by Mu Ltd. Required: a) Prepare journal entries for Alpha Ltd in FY2022 to account for its investment in Beta Ltd using the Equity Method. Use the Reclassification Method to account for the profit…Ditinti Limited acquired 80% (and control) of the shares of Chai Limited at 1 March 2016 when the fair value of the netassets of Chai Limited was R250 000. What is the value of the non-controlling interests in Chai Limited?Select one:a.R250 000b.R200 000c.R80 000d.R50 000
