Homework Help is Here – Start Your Trial Now!
Business
Accounting
Q1. Compute goodwill / gain on bargain purchase. Select one: O A Goodwill $33,400 O B. Gain on bargain purchase $32,200 OC. Goodwill $32,200 O D. Gain on bargain purchase $33,400

Q1. Compute goodwill / gain on bargain purchase. Select one: O A Goodwill $33,400 O B. Gain on bargain purchase $32,200 OC. Goodwill $32,200 O D. Gain on bargain purchase $33,400

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

please dont give me image based answers thank you

On 1 January 2018, Bear Ltd purchased 100% of the shares of Panda Ltd for $180,000. At that date, the equity of Panda Ltd was as follows: Share capital Retained earnings Asset revaluation surplus $ 80,000 $ 60,000 $5,000 At 1 January 2018, the recorded amounts of Panda Ltd's assets and liabilities were equal to their fair values except inventory. At that date, carrying amount of inventory was $12,000 and fair value was $16,000. 60% of this inventory was sold by Panda Ltd in 2018. Tax rate is 30%. Q1. Compute goodwill / gain on bargain purchase. Select one: OA. Goodwill $33.400 O B. Gain on bargain purchase $32,200 OC. Goodwill $32,200 OD. Gain on bargain purchase $33,400
Transcribed Image Text:On 1 January 2018, Bear Ltd purchased 100% of the shares of Panda Ltd for $180,000. At that date, the equity of Panda Ltd was as follows: Share capital Retained earnings Asset revaluation surplus $ 80,000 $ 60,000 $5,000 At 1 January 2018, the recorded amounts of Panda Ltd's assets and liabilities were equal to their fair values except inventory. At that date, carrying amount of inventory was $12,000 and fair value was $16,000. 60% of this inventory was sold by Panda Ltd in 2018. Tax rate is 30%. Q1. Compute goodwill / gain on bargain purchase. Select one: OA. Goodwill $33.400 O B. Gain on bargain purchase $32,200 OC. Goodwill $32,200 OD. Gain on bargain purchase $33,400
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting for Business Combinations
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS