On 1 July 2015 Sarah Ltd acquires all the shares in Jane Ltd for $857,000 cash The financial statements of Jane Ltd as at 1 July 2015 shows the following: Retained earnings 164,000 Share capital 184,000 The tax rate is 30% At the date of acquisition all the net assets of Jane Ltd are at fair value except for the following: Carrying Amount Fair Value Land $188,000 $231,000 Equipment (cost $211,000) $197,000 $267,000 Calculate and enter the amount of goodwill for the acquisition analysis in the answer bloc
On 1 July 2015 Sarah Ltd acquires all the shares in Jane Ltd for $857,000 cash The financial statements of Jane Ltd as at 1 July 2015 shows the following: Retained earnings 164,000 Share capital 184,000 The tax rate is 30% At the date of acquisition all the net assets of Jane Ltd are at fair value except for the following: Carrying Amount Fair Value Land $188,000 $231,000 Equipment (cost $211,000) $197,000 $267,000 Calculate and enter the amount of goodwill for the acquisition analysis in the answer bloc
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On 1 July 2015 Sarah Ltd acquires all the shares in Jane Ltd for $857,000 cash The financial statements of Jane Ltd as at 1 July 2015 shows the following:
Share capital 184,000
The tax rate is 30%
At the date of acquisition all the net assets of Jane Ltd are at fair value except for the following:
| Carrying Amount | Fair Value | |
| Land | $188,000 | $231,000 |
|
Equipment (cost $211,000) |
$197,000 | $267,000 |
Calculate and enter the amount of
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