Ashong Plc has two subsidiaries, Yvonne Plc and Wett Plc. It purchased 10,000 shares in Yvonne Plc on 1 January 2015 for GH¢35,000 when the retained earnings of Yvonne Plc stood at GH¢21,000. It purchased 15,000 shares in Wett Plc for GH¢30,000 on 31 December 2015 when the retained earnings of Wett Plc stood at GH¢16,000. The issued share capital (all issued at GHC 1 each ) of the two subsidiaries is as follows: 2 Yvonne Plc GH¢15,000 Wett Plc GH¢20,000 By the end of 2018, goodwill impairment losses totaled GH¢4,000. What is the carrying amount of goodwill in the consolidated statement of financial position at 31 December 2018 ?
Ashong Plc has two subsidiaries, Yvonne Plc and Wett Plc. It purchased 10,000 shares in Yvonne Plc on 1 January 2015 for GH¢35,000 when the retained earnings of Yvonne Plc stood at GH¢21,000. It purchased 15,000 shares in Wett Plc for GH¢30,000 on 31 December 2015 when the retained earnings of Wett Plc stood at GH¢16,000. The issued share capital (all issued at GHC 1 each ) of the two subsidiaries is as follows: 2 Yvonne Plc GH¢15,000 Wett Plc GH¢20,000 By the end of 2018, goodwill impairment losses totaled GH¢4,000. What is the carrying amount of goodwill in the consolidated statement of financial position at 31 December 2018 ?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Ashong Plc has two subsidiaries, Yvonne Plc and Wett Plc. It purchased 10,000 shares in
Yvonne Plc on 1 January 2015 for GH¢35,000 when the
GH¢21,000. It purchased 15,000 shares in Wett Plc for GH¢30,000 on 31 December 2015 when the
retained earnings of Wett Plc stood at GH¢16,000. The issued share capital (all issued at GHC 1 each )
of the two subsidiaries is as follows:
2
Yvonne Plc GH¢15,000
Wett Plc GH¢20,000
By the end of 2018,
What is the carrying amount of goodwill in the consolidated
December 2018 ?
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