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#1 for goodwill in FV for SNA @ DOA for shares is $18000 why should it not be $6000 or $12000
sorry mike I didn’t realize that they add the 8000shares +12000RE to get 18000 that is how they get 18000 but how did they get the profit/loss negative 3200 to be positive 3200 in FV for SNA @ DOA
SIX and twelve, not EIGHT and twelve as you have posted!
2,300 not 3,200 as you have posted!
Don’t make careless mistakes like this next week!!!!
If we know that retained earnings at the end of the year were 12,000 and that that was after deducting a loss of 4,600 for the year, then the loss attributable to the post acquisition period is added back.
Think about it! If profits at acquisition had been $14,300 and there was a loss post acquisition, then the profits as at date of acquisition would be $12,000
So looking at it as from the year end figure of $12,000, how do we arrive back at the position as at date of acquisition?
OK?
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