The last part basically says this:Salomon Factory Lld balance sheet has not taken account ofthese fair values. Group depreciation policy is as follows: Property 2% and Plantand equipment 10% per annum using straight-line basis. Depreciation iscalculated on fair values where available.iii. An impairment review has been carried out on the consolidated goodwill at theend of each year since the acquisition the goodwill impaired has been as follows:in 2015/12/31 N$ 5 000, 2016/12/31 N$ 2 000, 2017/12/31 N$ 3 000 respectivelyRequired:Prepare the consolidated balance sheet of the Omaheke Manufacturers as at 31December 2017. The Omaheke Manufacturers Ltd acquired Salomon Factory Lld on 1 January 2015 forN$ 1.8 million of Salomon Factory Lld ordinary 50 cents shares paying N$1.2m. At thedate of acquisition the retained earnings of Salomon Factory Lld were N$110,000. Thedraft balance sheets of the two enterprises as at 31 December 2017 were as follows:OmahekeSalomonManufacturers FactoryLtdLldN$ 000N$ 000AssetsNon-current assets:PropertyPlant and equipment1,7501,340930620Investment in Lia1,4004,0801,960Current assets:260250Inventory370Trade receivables410Cash11020890530Total assets4,9702,490Equity and liabilitiesEquity:Ordinary sharesShare premium accountRetained earnings2,2002001,2001001,3202003,7201,500

Answered: Image /qna-images/answer/aad72d5a-fd85-4d61-8412-0ba3e0da56d2.jpg

Answered: The Omaheke Manufacturers Ltd acquired…

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

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

Section: Chapter Questions

Problem 35P

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The last part basically says this:

Salomon Factory Lld balance sheet has not taken account of
these fair values. Group depreciation policy is as follows: Property 2% and Plant
and equipment 10% per annum using straight-line basis. Depreciation is
calculated on fair values where available.
iii. An impairment review has been carried out on the consolidated goodwill at the
end of each year since the acquisition the goodwill impaired has been as follows:
in 2015/12/31 N$ 5 000, 2016/12/31 N$ 2 000, 2017/12/31 N$ 3 000 respectively
Required:
Prepare the consolidated balance sheet of the Omaheke Manufacturers as at 31
December 2017.

The Omaheke Manufacturers Ltd acquired Salomon Factory Lld on 1 January 2015 for
N$ 1.8 million of Salomon Factory Lld ordinary 50 cents shares paying N$1.2m. At the
date of acquisition the retained earnings of Salomon Factory Lld were N$110,000. The
draft balance sheets of the two enterprises as at 31 December 2017 were as follows:
Omaheke
Salomon
Manufacturers Factory
Ltd
Lld
N$ 000
N$ 000
Assets
Non-current assets:
Property
Plant and equipment
1,750
1,340
930
620
Investment in Lia
1,400
4,080
1,960
Current assets:
260
250
Inventory
370
Trade receivables
410
Cash
110
20
890
530
Total assets
4,970
2,490
Equity and liabilities
Equity:
Ordinary shares
Share premium account
Retained earnings
2,200
200
1,200
100
1,320
200
3,720
1,500

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