QUESTION 3 The following statements of financial position were extracted from the books of two companies at 31 December 2010. Ford Toyota Non-Current Assets: PPE 75,000 15,000 Investments Shares in Toyota 30,000 105,000 Current Assets 220,000 33,000 325,000 48,000 Equity Share Capital 85,000 5,000 Share Premium 30,000 5,000 Retained earning 43,000 9,000 158,000 19,000 Current liabilities 167,000 29,000 325,000 48,000 Ford acquired all of the share capital of Toyota one year ago. The retained earnings of Toyota stood at $4,000 on the day of acquisition. Goodwill is calculated using the fair value method. There has been no impairment of goodwill since acquisition. Required: Prepare the consolidated statement of financial position of Derek as at 31 December 2010.
QUESTION 3 The following statements of financial position were extracted from the books of two companies at 31 December 2010. Ford Toyota Non-Current Assets: PPE 75,000 15,000 Investments Shares in Toyota 30,000 105,000 Current Assets 220,000 33,000 325,000 48,000 Equity Share Capital 85,000 5,000 Share Premium 30,000 5,000 Retained earning 43,000 9,000 158,000 19,000 Current liabilities 167,000 29,000 325,000 48,000 Ford acquired all of the share capital of Toyota one year ago. The retained earnings of Toyota stood at $4,000 on the day of acquisition. Goodwill is calculated using the fair value method. There has been no impairment of goodwill since acquisition. Required: Prepare the consolidated statement of financial position of Derek as at 31 December 2010.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:QUESTION 3
The following statements of financial position were extracted from the books of two
companies at 31 December 2010.
Ford
Toyota
Non-Current Assets:
PPE
75,000
15,000
Investments
Shares in Toyota
30,000
105,000
Current Assets
220,000
33,000
325,000
48,000
Equity
Share Capital
85,000
5,000
Share Premium
30,000
5,0০০
Retained earning
43,000
9,000
158,000
19,000
Current liabilities
167,000
29,000
325,000
48,000
Ford acquired all of the share capital of Toyota one year ago. The retained earnings of
Toyota stood at $4,000 on the day of acquisition. Goodwill is calculated using the fair
value method. There has been no impairment of goodwill since acquisition.
Required:
Prepare the consolidated statement of financial position of Derek as at 31 December
2010.
.
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