etermine the amount of goodwill (or bargain purchase) arising out of the acquisition if the purchase consideration paid was $1,000,000 cash and 400,000 shares each valued at $1.50

The PTCL Ltd acquires all issued capital of the S Ltd for a consideration of $1,000,000 cash and 800,000 shares each valued at $1.50. The summary statement of the financial position of the subsidiary company immediately following the acquisition is: Fair value of assets acquired $2,640,000 Fair value of liabilities acquired $720,000 Total shareholders’ equity of the subsidiary company $800,000 Retained earnings of the subsidiary company $1,120,000 Required: (a) Pass the necessary journal entry to record the acquisition (b) Determine the amount of goodwill (or bargain purchase) arising out of the acquisition (c) Pass the necessary consolidation entry to eliminate the subsidiary by the parent company (d) Determine the amount of goodwill (or bargain purchase) arising out of the acquisition if the purchase consideration paid was $1,000,000 cash and 400,000 shares each valued at $1.50.Thanks

Papa Ltd. acquires 80% shares of Child Ltd. for $90,000 with control. The fair value of Child's net assets is $100,000 on the acquisition date. Prepare a consolidated statement for Papa Ltd. on the date acquisition give the separate statements for each entity below Papa Ltd. Child Ltd. Assets: Cash $100,000 15,000 100,000 $1,000 5,000 30,000 4,000 Accounts Receivable Inventory Other assets 5,000 Property Plant and Equipment 70,000 40,000 Total Assets $290,000 $80,000 Liabilities: Accounts Payable Accrued Expenses Other Liability Long term debt Equity: Common Stock 10,000 5,000 20,000 50,000 3,000 2,000 5,000 10,000 120,000 40,000 Retained Earnings Total Liability & Equity 85,000 20,000 $290,000 $80,000

On 30 June 2021 Parent Ltd acquired 100 per cent of the shares in Subsidiary Ltd for a cost of $1,000,000. The account balances of the two entities at the date of acquisition were:   Parent Ltd ($)   Subsidiary Ltd ($) Cash 200,000   100,000 Accounts receivable 260,000   180,000 Inventory 400,000   220,000 Property, plant and equipment 800,000   700,000 Accumulated depreciation (240,000)   (180,000) Land 600,000   200,000 Investment in Sydney Ltd 1,000,000   - Accounts payable 220,000   140,000 Loans payable 400,000   380,000 Share capital 1,800,000   400,000 Retained earnings 600,000   300,000 Additional information: All assets of Subsidiary Ltd were fairly valued at acquisition except the land, which had a fair value of $280,000. The tax rate is 30 per cent. Required: (a) Prepare the consolidation journal entries

Parent Company purchased 100 percent of Subsidiary Corporation's stock on January 1, X1, for $250,000 cash. At date of acquisition, Subsidiary's Share Capital and RE amounted to $50,000 and $10,000 respectively. Summarized statements of financial position of the companies on December 31, X3, are presented below.           Parent Subsidiary Assets     Cash Investment $100,000 250,000 $25,000 Other assets 225,000 125,000 Total assets $575,000 $150,000   Liabilities and equity     Current liabilities $25,000 $35,000   Share capital   150,000   50,000 Retained earnings 400,000 65,000 Total liabilities and equity $575,000 $150,000   Fair values of Subsidiary were equal to book values except for buildings, which had a fair value of $100,000 in excess of net book value (remaining useful life of 10 years). Goodwill has not been impaired since acquisition. No dividends were declared in X3. Profit for the year…

E Company Ltd, a reporting entity, purchases all the issued shares of D Company Pty Ltd for $2,100,000. The net assets of D Company Pty Ltd at the date of acquisition consist of land $2,500,000 and a liability of $400,000 with these values representing their respective fair values. E Company Ltd will record the acquisition in its separate accounting records as follows: O a. Dr. Investment in D Company Pty Ltd $2,100,000 Cr. Issued Capital $2,100,000 O b. None of these options is correct O. Dr. Investment in D Company Pty Ltd $2,100,000 Cr. Cash $2,100,000 O d. Dr. Land $2,500.000 Cr. Liability $400,000 Cr. Cash $2,100,000

statements of financial position of the companies immediately after the acquisition were as follows Problem 12.20 (Goodwill) Joplin Ltd acquired 100% of the issued capital of Hendrix Ltd on 1 July 20X0 for $290 000. The (all assets stated at their fair values): Statements of Financial Position for the year ended 1 July 20X0 Joplin Ltd 24 Hendrix Ltd %24 Shareholders' equity Share capital 400 000 200 000 General reserve 40 000 20 000 Retained earnings 30 000 120 000 560 000 Total shareholders' equity 250 000 Assets Current assets 130 000 55 000 Investment in D Ltd 290 000 310 000 365 000 Other non-current assets 455 000 Total assets 875 000 Liabilities Current liabilities 145 000 35 000 Non-current liabilities 170 000 80 000 Total liabilities 315 000 115 000 560 000 250 000 Net assets

Assume that Company A acquires 70 per cent of Company B for a cash price of $14 million when the share capital and reserves of Company B are: Share capital$8 millionRetained earnings$2 million $10 millionPass the necessary consolidation journal entries and the journal entries to record the non-controlling interest if the non-controlling interest in the acquirer is measured at the non-controlling interest’s proportionate share of the acquiree’s identifiable net assets

On 1 July 2020, Big Ltd acquired all the issued share capital of Small Ltd for cash for an amount of $1,050,000. On the date of the acquisition, the statements of the financial position of both entities are as follows:   Big Ltd ($) Small Ltd ($) Assets     Cash 21,000 10,500 Accounts receivable 315,000 115,500 Land 420,000 210,000 Plant 1,680,000 1,050,000 Investment in Small Ltd 1,050,000     3,486,000 1,386,000 Liabilities     Accounts payable 126,000 63,000 Loans payable 840,000 315,000 Shareholders’ equity     Share capital 2,100,000 420,000 Retained earnings 420,000 588,000   3,486,000 1,386,000   Required: a. Calculate the goodwill on acquisition assuming all net assets of small Ltd are recorded in fair value.  b. Prepare consolidation journal entries.  c.

On 1 July 2020, Big Ltd acquired all the issued share capital of Small Ltd for cash for an amount of $1,050,000. On the date of the acquisition, the statements of the financial position of both entities are as follows:   Big Ltd ($) Small Ltd ($) Assets     Cash 21,000 10,500 Accounts receivable 315,000 115,500 Land 420,000 210,000 Plant 1,680,000 1,050,000 Investment in Small Ltd 1,050,000     3,486,000 1,386,000 Liabilities     Accounts payable 126,000 63,000 Loans payable 840,000 315,000 Shareholders’ equity     Share capital 2,100,000 420,000 Retained earnings 420,000 588,000   3,486,000 1,386,000   Required: a.Calculate the goodwill on acquisition assuming all net assets of small Ltd are recorded in fair value.  b.Prepare consolidation journal entries.  c.