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Required: 1. Calculate the company's ownership ratio (Bao) in the company (Tre). 2. Determination of fame resulting from the investments (Bao) in (Tri). Assume that the carrying amount of specific assets and obligations equal to fair value

Required: 1. Calculate the company's ownership ratio (Bao) in the company (Tre). 2. Determination of fame resulting from the investments (Bao) in (Tri). Assume that the carrying amount of specific assets and obligations equal to fair value

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Exercise 3 Calculating the percentage of ownership and goodwill for investments acquired directly from the investee company The shareholders' equity of the company (TRI) on December 31 consists of the following (in thousands) Share capital, 10 60000 nominal value Issued and 600 traded shares The equity 150 premium Retained 250 earnings Total 10000 Shareholders Equity On January 1, 2011, the company (Bao) bought from the company (Tre) unexploded orders formerly for $ 500,000. Required: 1. Calculate the company's ownership ratio (Bao) in the company (Tre). 2. Determination of fame resulting from the investments (Bao) in (Tri). Assume that the carrying amount of specific assets and obligations equal to fair value
Transcribed Image Text:Exercise 3 Calculating the percentage of ownership and goodwill for investments acquired directly from the investee company The shareholders' equity of the company (TRI) on December 31 consists of the following (in thousands) Share capital, 10 60000 nominal value Issued and 600 traded shares The equity 150 premium Retained 250 earnings Total 10000 Shareholders Equity On January 1, 2011, the company (Bao) bought from the company (Tre) unexploded orders formerly for $ 500,000. Required: 1. Calculate the company's ownership ratio (Bao) in the company (Tre). 2. Determination of fame resulting from the investments (Bao) in (Tri). Assume that the carrying amount of specific assets and obligations equal to fair value
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