- This topic has 1 reply, 2 voices, and was last updated 5 years ago by
.
- Posts
Hunt acquired 80% of Safari on 1 Oct 20X5. At that date,
Safari had SC of $1 5,000,000 shares & SP of $1,000,000.
In exchange, Hunt issued $1 five equity shares for every four shares acquired.
At 1 October 20X5, the fair value of Hunt’s equity shares was $2.50/share and FV NCI in Safari was $2,000,000.
At 30 June 20×6, Safari’s profit after tax was $4,000,000.
While on 1 July 20X5, REs of Safari were $2,000,000.
Profit after tax of Safari for the year ended 30 June 20X6 accrued evenly throughout the year.
At the acquisition date, FV of a buildings owned by Safari exceeded their CV by $1,000,000. At that date, the properties had a remaining estimated useful life of 30 years and were still owned at 30 June 20X6.
Calculate goodwill on acquisition of Safari for inclusion in the Hunt group accounts
for the year ended 30 June 20X6Please do not simply type out test questions and expect to be provided with a full answer.
You must have an answer in the same book in which you found the question, so ask about whatever it is in the answer that you are not clear about and then I will explain 🙂I assume you have watched my free lectures on consolidations? The lectures are a complete free course for Paper FA and cover everything needed to be able to pass the exam well.
- The topic ‘Consolidated Financial Statements’ is closed to new replies.