Vii.MoFin LTD On 10 November 2020, GoMo Ltd purchased 80% (800 shares) of the issued share capital in a new UK company called 'MoFin Ltd'. GoMo Ltd paid £160,000 for the issued share capital. 'MoFin" was originally run as a sole-trade by Mr Smith. On 10 November 2020, Mr Smith transferred the business assets in to a newly incorporated company 'MoFin Ltd', in return he received £160,000 cash and a 20% shareholding in the company (200 shares). The market value of the net assets Mr Smith transferred to 'MoFin Ltd' on incorporation was: Internally generated goodwill Freehold office* Debtors Creditors 60,000 127,000 25,000 Market Value £ Total net assests 200,000 *The freehold office was brought March 2011 for £50,000
Vii.MoFin LTD On 10 November 2020, GoMo Ltd purchased 80% (800 shares) of the issued share capital in a new UK company called 'MoFin Ltd'. GoMo Ltd paid £160,000 for the issued share capital. 'MoFin" was originally run as a sole-trade by Mr Smith. On 10 November 2020, Mr Smith transferred the business assets in to a newly incorporated company 'MoFin Ltd', in return he received £160,000 cash and a 20% shareholding in the company (200 shares). The market value of the net assets Mr Smith transferred to 'MoFin Ltd' on incorporation was: Internally generated goodwill Freehold office* Debtors Creditors 60,000 127,000 25,000 Market Value £ Total net assests 200,000 *The freehold office was brought March 2011 for £50,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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GoMo Ltd is a UK registered company which commenced trading in the UK on 1 March 2020 as a manufacturer of mopeds (small motorbikes). GoMo Ltd prepared its first accounts for the period 1 March 2020 to 31 December 2020. The following information is available:
B6) Calculate the
Your answer should take into consideration any incorporation and business asset disposal (entrepreneur’s) relief which are available to Mr Smith.
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