On 1 July 2016, A Ltd acquired 80% of the issued shares of B Ltd for $190 000. At this date, the equity of B Ltd was: Share capital General reserve Retained earnings $ 100 000 50 000 60 000 At acquisition date . At 30 June 2018, the equity of B Ltd consisted of: Share capital General reserve Retained earnings $ 100 000 70 000 90 000
On 1 July 2016, A Ltd acquired 80% of the issued shares of B Ltd for $190 000. At this date, the equity of B Ltd was: Share capital General reserve Retained earnings $ 100 000 50 000 60 000 At acquisition date . At 30 June 2018, the equity of B Ltd consisted of: Share capital General reserve Retained earnings $ 100 000 70 000 90 000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
On 1 July 2016, A Ltd acquired 80% of the issued shares of B Ltd for $190 000. At this date, the equity of B Ltd was:
|
Share capital General reserve |
|
$ 100 000 50 000 60 000 |
At acquisition date
. At 30 June 2018, the equity of B Ltd consisted of:
|
Share capital General reserve Retained earnings |
|
$ 100 000 70 000 90 000 |
During the 2017–18 year B Ltd recorded a profit of $20 000. At 1 July 2016, the fair value of the non-controlling interest was $45 000 and A Ltd adopts the full
Required: Prepare the acquisition analysis (without any consolidation entries) please answer complete and working note
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