- This topic has 3 replies, 2 voices, and was last updated 10 years ago by
.
- Posts
Q1 December 2008
On April1 2008, pedantic acquired 60% of the equity shares of sophistiv in a share exchange of two shares in pedantic for every three shares in sophistic.The issue of shares has not yet been recorede by pedantic.At the date of acqusition, shares in pedantic had a market value of $6 each. Below is the summerised draft financial statements of both companies.Notes
The following information is relevant:
Sales from sophistic to pedantic in the post acquistion period were $8 million.prepare the consolidated income statemet for pedantic for the year ended 30 september 2008.
workings.
purp(8000-5200)*40/140=800
why not (8000-5200)*40/140*6/12
Also why is the$8000 itself not apportioned in the calculation of Cost of sales?
Because the question says, and you have typed it, that the “sales from Sophistic IN THE POST ACQUISITION PERIOD” were $8,000,000
Ok?
- You must be logged in to reply to this topic.