7.4 15% Minority interests in STU are £30,000; if post-acquisition profits were £60,000 and £129,000 was paid by the parent for acquisition goodwill arising on acquisition (in thousands) is nearest

7.4 15% Minority interests in STU are £30,000; if post-acquisition profits were £60,000 and £129,000 was paid by the parent for acquisition goodwill arising on acquisition (in thousands) is nearest

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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a. 580,500 b. 918,000 c. 1,012,500 d. 675,000
Cacik acquired 80% of the 1 million issued £1 ordinary shares capital of Chaas on 1 April 20X1 for £1,750,000. Chaas' retained earnings were £920,000 at acquisition and £1,100,000 at year end 31 December 20X1 The carrying amount (NBV) of Chaas' net assets at that date was the same as the fair value, with the exception of a building which had a carrying amount of £680,000 and a fair value of £745,000. The Group measures non-controlling interest (NCI) at share of net assets. There was no impairment in the period after acquisition. Calculate the amount of goodwill that would be recognised in the consolidated Statement of financial position at 31 December 20X1. a. None of these options are correct b. £18,000 С. £nil d. - £382,000 e. £559,000 е. £526,000 g. £162,000 h. £214,000 F.
2-McKinney Company acquires an 60% interest in its Sandstone for a purchase price of $1.000,000. The excess of the purchase price over the book value of the Sandstone’s Stockholders’ Equity is allocated to a building (in PPE, net) that is worth $212,250 more than its book value, an unrecorded Patent that the parent valued at $125,000, and Goodwill of $348,417, 60% of which is allocated to the parent. The parent and the Sandstone report the following balance sheets on the acquisition date: McKinney Sandstone McKinney Sandstone Cash $1,500,000 $300,000 Current Liabilities $750,000 $300,000 Accounts receivable 1,597,500 240,000 Long-term Liabilities 1,268,222 410,000 Inventory 2,689,550 275,000 Common Stock 235,000 75,000 Equity Investment 1,000,000 APIC 5,472,211 156,000 PPE, net 6,008,510 876,000 Retained Earnings 5,070,127 750,000…
acquired 75% of Ben and 30% of Weed when Ben's reserves were £16,000, and those of Weed were £4,000. Fair value of Ben's net assets at the time of acquisition amounted to £35,000. All company accounts are shown below. Balance Sheets at 31-Dec-20 Non-current assets Investment in Ben Investment in Weed Other Net Assets Х 26,000 Ben 9,000 Weed 6,000 30,000 12,000 10,000 37,000 21,000 78,000 46,000 27,000 Issued Share Capital 40,000 16,000 10,000 Retained Earnings 30,000 26,000 14,000 Profit/Loss 8,000 4,000 3,000 78,000 46,000 27,000 Required: For Ye-Dec-20 prepare 1) Group Balance Sheet 2) Group Income Statement 3) Reconcile group and company net assets
on 1/1/2019 X CO acquired 80% of Y common stock for $150,000 in the same day the y net assets was $ 140,000 , in the same date the fair value of assets and liabilities were equal .year ended 31/12/2019 y reported income $50,000 , declared dividend $30,000 , X using equity methods what is good will balance on 1/1/2019 Select one: a. 10,000 b. 47,500 c. 37,500 d. 50,000 Previous page Next pag W to search hp
9. Busquets Plc. acquired 100% of Neymar Ltd. in 2022. The table below reports the book value and the fair value of the assets and liabilities of Neymar Ltd. at the time of the acquisition: Amounts in £ Cash Accounts receivable PPE Liabilities Book value ANSWER: D 200 100 500 50 Fair value 200 180 750 70 Busquets Plc. paid £2,000 in cash for Neymar and there were no costs associated with the acquisition. As a result of the acquisition, the total assets of Busquets Plc. a. Increase by £2,000 b. Decrease by £2,000 c. Do not change d. Increase by £70 e. None of the above

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