On 01 July 2021 Wanda Ltd acquired 100% of the issued voting shares of Vision Ltd for consideration of $385,000. At the date of acquisition Vision Ltd equity balances were as follows: Issued capital $200,000, and Retained earnings $50,000. All of Vision Ltd's identifiable asset and assumed liabilities were at fair value except an item of plant whose fair value was $10,000 greater than its carrying value. The remaining useful life of the plant was 5 years. The company tax rate is 30%. How much goodwill will be recognised on consolidation?
On 01 July 2021 Wanda Ltd acquired 100% of the issued voting shares of Vision Ltd for consideration of $385,000. At the date of acquisition Vision Ltd equity balances were as follows: Issued capital $200,000, and Retained earnings $50,000. All of Vision Ltd's identifiable asset and assumed liabilities were at fair value except an item of plant whose fair value was $10,000 greater than its carrying value. The remaining useful life of the plant was 5 years. The company tax rate is 30%. How much goodwill will be recognised on consolidation?
On 01 July 2021 Wanda Ltd acquired 100% of the issued voting shares of Vision Ltd for consideration of $385,000. At the date of acquisition Vision Ltd equity balances were as follows: Issued capital $200,000, and Retained earnings $50,000. All of Vision Ltd's identifiable asset and assumed liabilities were at fair value except an item of plant whose fair value was $10,000 greater than its carrying value. The remaining useful life of the plant was 5 years. The company tax rate is 30%. How much goodwill will be recognised on consolidation?
On 01 July 2021 Wanda Ltd acquired 100% of the issued voting shares of Vision Ltd for consideration of $385,000. At the date of acquisition Vision Ltd equity balances were as follows: Issued capital $200,000, and Retained earnings $50,000. All of Vision Ltd's identifiable asset and assumed liabilities were at fair value except an item of plant whose fair value was $10,000 greater than its carrying value. The remaining useful life of the plant was 5 years. The company tax rate is 30%. How much goodwill will be recognised on consolidation?
Definition Definition Intangible asset that includes proprietary or intellectual property and brand value of a firm. Goodwill is recorded in the books when a firm purchases another firm and the purchase price is more than the fair value of net identifiable assets of the acquired business. The amount of goodwill is recorded on the asset side of the balance sheet (statement of financial position).
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