(a) Prepare an acquisition analysis and determine the amount of goodwill or gain on bargain purchase at acquisition. (Show all workings)

Q: Ruth Ltd has a 30% investment in Abraham Ltd, which it had acquired four years ago on 1 July 2008.…

A: Journal entry:   It is the first step of recording transactions of a company. Before this, no other…

Q: S Ltd(a partially owned subsidiary), sold inventories for the first time to its parent, P ltd during…

A: In the consolidated financial statements, all the intragroup transactions and related gains and…

Q: Positive ltd acquired an 80% stake in Strong Ltd in 20x1. During the year 20x2, the following…

A: ANSWER: Prepare the consolidation journal entries for the elimination of the above inter-company…

Q: PKT Ltd acquired 80% of the ordinary shares of CF Ltd. The net assets were fairly valued on 1…

A: Journal entries are made to record the transactions as the first process in the books of accounts…

Q: The Resty Company issued 200,000 new P1 ordinary shares at a fair value of P1.80 each. Resty…

A: Total expense net of tax = ( professional fees + internal management time in managing the process) x…

Q: Timberlake Ltd, a partially exempt company for the purposes of value added tax (VAT), requires…

A: A tax is a financial charge imposed by government. It provides a source of income to the government.…

Q: What will be reported on the income statement as a "special item?"

A: Special items in accounting for discontinued operations refer to significant transactions or events…

Q: Sky Company is a CCPC

A: 1] It is a private corporation. it is a corporation that was resident in Canada and was either…

Q: (i) Discuss whether the entries suggested by Li Chen are correct, explaining on a line-by-line basis…

A: The correct adjustment entries: Results:

Q: On 1 July 2014. Ark Ltd acquired a 30% interest in Sign Ltd for $54,929,000. During the year ended…

A: The share of the parent company in the profits of its subsidiary is equal to the amount of adjusted…

Q: BBB,Inc sells its unprofitable division A at a gain of $20,000. Before the sale, division A had a…

A: We know that continuing operations means the operating activities of the company which it undertakes…

Q: Capital Gain Tax consequences of the above transaction.

A: Capital gain means profit arising on sale of assets after deducting all expenses.

Q: PKT Ltd acquired 80% of the ordinary shares of CF Ltd. The net assets were fairly valued on 1…

A: According to the question given, we need to prepare the journal entries. Journal entries:Journal…

Q: Entity P acquired 30% of the equity shares of Entity A several years ago at a cost of Rs. 275,000.…

A: Solution                 a) Unrealized Profit and Double entry               Information…

Q: Pender Corp. paid $330,000 for a 30% interest in Saltspring Limited on January 1, Year 6. During…

A: INTRODUCTION: A journal is a book that contains the first documentation of all business…

Q: (a) Jessica Ltd sold inventory during the current period to its wholly owned subsidiary, Amelie Ltd,…

A: a. The entries suggested are incorrect. These should be as follows:

Q: Compare the income tax expense and the balance sheet liability for the year 2014 assuming that: The…

A: A Ltd. has made a provision for Corporation tax for the year 2013 at £100,000. The actual amount…

Q: Pearl Limited acquired 100% of the issued capital of Silver Limited on 1 July 2010, for $90,000.…

A: The consolidated financial statement is prepared after the elimination of unrealized gain and…

Q: S Ltd(a partially owned subsidiary), sold inventories for the first time to its parent, P ltd during…

A: Intragroup transactions are those transactions which are made between the parent and subsidiary. At…

Q: 13. The Resty Company issued 200,000 new P1 ordinary shares at a fair value of P1.80 each. Resty…

A: Solution:- Calculation of the  increase in equity in the statement of financial position of Resty…

Q: Commercial 5. Other financial liabilities 32.000,00  20.500,00           300 GOODS 171 LONG-TERM…

A: Taxes - Taxes are compulsory payments made by a government organization, whether local, regional, or…

Q: Alliance Company Ltd has a profit before tax of $12 000 000 at the end of 31 December 2013, after…

A: All amounts are in dollar ($).

Q: The Resty Company issued 200,000 new P1 ordinary shares at a fair value of P1.80 each. Resty…

A:

Q: The Resty company issued 200,000 new P1 ordinary shares at a fair value of P1.80 each. Resty…

A: Total expense net of tax = ( professional fees + internal management time in managing the process) x…

Q: (a) Jessica Ltd sold inventory during the current period to its wholly owned subsidiary, Amelie Ltd,…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: Calculate and enter the amount of goodwill

A: Given in the question: The carrying amounts is equal identifiable assets is equal to the fair value…

Q: The Resty Company issued 200,000 new P1 ordinary shares at a fair value of P1.80 each. Resty…

A: Issue of shares=Number of shares×Fair value=200,000×P 1.80=P 360,000

Q: On 1 July 2015 Sarah Ltd acquires all the shares in Jane Ltd for $857,000 cash The financial…

A: Goodwill is recorded on the balance sheet as an asset, and it represents the premium paid by the…

Q: The estimated corporation tax charges of Cherry Limited for the years ended 31 December 1996 and 31…

A: We have the following information  for Cherry Limited: Estimated tax chargesDecember 1996:…

Q: JST Limited has computed the following income (loss) for the year ended December 31, 2022: Loss…

A: Capital gain or loss arises when a capital asset is sold, if its selling price is more than its…

Q: The Resty Company issued 200,000 new P1 ordinary shares at a fair value of P1.80 each. Resty…

A: Solution:- Calculation the increase in equity in the statement of financial position of Resty as…

Q: Arya Ltd acquired 25% of the voting shares of Brya Ltd on 1 July 2014 for $80,000.  At the date of…

A: A company uses equity method of accounting for associate company when it has acquired 20% to 50%…

Q: implication on unrealized profit? S)SFP R5 600, Cr Income Tax expense (S) P/L R5 600 (S) SFP R7 000,…

A: Lets understand the basics. Deferred tax arise when there is taxable temporary difference arise…

Q: Required: Calculate the company’s taxable income for the year after considering some adjustments…

A: The question provides information about outstanding expenses for Thamaga (Pvt) Ltd as of June 30,…

Q: On 1 January 2021, Black Ltd purchased all the shares in Beard Ltd. On 3 March 2021 Beard Ltd…

A: Capital reserve It is the reserve  which is  created from capital profits and this  reserve is  used…

Q: arnings of Dunn Ltd were R8 000 and 18 000 ordinary shares worth R36 000. Bones Ltd exercises…

A: Other income is income that does not come from a company's core business, such as interest. For…

Q: Gates Corp. has 150,000 shares of common stock outstanding. In 2017, the company reports income from…

A:

Q: CROWN Pty Ltd (‘the company’) recorded the following transactions during the 2021 tax year: -  1…

A: If any entity is a corporate tax entity then it is considered as a 'franking entity'. The amount of…

Q: al entries for elimination of intragroup sales?

A: In this example S ltd is partially owned subsidiary company and S ltd sold goods to its parent…

Q: CFC Pty Ltd (‘the company’) recorded the following transactions in relation to its franking account:…

A: Franking Account : it is the account that recorded the tax paid by the entity. Further the credit of…