The following information relates to questions 1-6 On 1 July 2020, Cindy Ltd acquired all the issued capital of Vida Ltd for a cash payment of $66,000 when the equity of Vida Ltd was: Share capital $31,000 Retained earnings Revaluation surplus $5,000 $8,000 At 1 July 2020, all assets of Vida Ltd were fairly valued. Directors determined that goodwill would be impaired by 10% in 2021, 2022 and 2023 on its original value. Assume that there are no intra-group transactions or deferred tax consequences from 1 July 2020 to 30 June 2023. The financial statements as at 30 June 2023 are provided in question 3 in the partially-completed consolidation worksheet. Tax rate is 30%. Reporting date is 30 June. Cindy Ltd has investment in other entities.
Q: Lew Iss See Kay LLP (LISKL) is currently evaluating an investment in a new comedy club. The club is…
A: Part 2:Explanation:Step 1: Calculate the discounted cash flows for each year using the required rate…
Q: Sk
A: Here's how we can approach this problem:Buoyant Force:Buoyant force is an upward force exerted on an…
Q: Question 1 Smart Technology Company had the following information during the previous year for one…
A: Both absorption costing and variable costing are methods used to determine product costs and income.…
Q: Presented here are long-term liability items for Blossom Inc. at December 31, 2022. Bonds payable…
A: Step 1:Step 2:
Q: provide answer all of three
A: 1. To find the gain or loss on disposal of the fixed asset, we first need to calculate the book…
Q: At December 31, 2024, the balance sheet of Darwin Corporation included 8 million common shares and 4…
A: Common shares at the beginning = 8 million.A stock split has been made in the current year at the…
Q: Eastview Magazine issued $690,000 of 15-year, 6% callable bonds payable on July 31, 2024, at 99. On…
A: References; Goldstein, M. A., Hotchkiss, E. S., & Nikolova, S. S. (2021). Dealer behavior and…
Q: Vienna Corporation has 30,000 shares of $30 par common stock outstanding. On August 2, Vienna…
A: Explanation:August 2 - When the board of directors declares a stock dividend, it is a distribution…
Q: Tempo Company's fixed budget (based on sales of 12,000 units) folllows. Fixed Budget Sales (12,000…
A: 1. Compute total variable cost per unit: Total variable costs include direct materials, direct…
Q: Last year Minden Company introduced a new product and sold 15,000 units at a price of $74 per unit.…
A: To solve this problem, we need to calculate the net operating income (loss), break-even points, and…
Q: provide 2 q answer
A: Question 1First, let's try to reconstruct the entries made.DATEDESCRIPTIONDEBITCREDITNovember 1,…
Q: K Corporation Inc. owns a restaurant business that it carries on in rented premises. The lease was…
A: Calculations: Class 13 asset rate = 20% To get the maximum CCA, simply: Maximum CCA = Opening…
Q: provide answer as per info
A: Income Statement:Net Sales (NS): Given as Net Sales = Cost of Goods Sold (COGS) + Gross MarginGiven…
Q: Required Information [The following information applies to the questions displayed below.] Suresh…
A: To compute the total increase in income by excluding the departments whose sales are less than their…
Q: I need the answer to price variance and efficieny overhead total variance for Variable Overhead
A:
Q: Use the Black-Scholes formula for the following stock: Time to expiration Standard deviation…
A: d. Stock Price ($60):As the stock price increases closer to or above the exercise price, the call…
Q: On December 31, 2017, Ayayai Inc. has a machine with a book value of $1,297,200. The original cost…
A:
Q: Edward Food Processing Company is a wholesale distributor of biscuits in Holborn. The Company has…
A: a) Calculate the Break-even point Contribution margin per unit = Selling price per unit - Variable…
Q: Vinubhai
A: 1. For each asset, determine the depreciable basis:Machinery: $70,000Computer equipment:…
Q: Tanya Turek has the following income and deductions: Gross Salary from Employment $35,000 Employment…
A: To calculate Tanya's net income, we need to combine her various income sources and deductions.…
Q: LBC Corporation makes and sells a product called Product WZ. Each unit of Product WZ requires 3.4…
A: Step 1:The budgeted direct labor cost per unit of Product WZ can be calculated by multiplying the…
Q: On January 1, 2015, Montock Company purchased as held-to-maturity debt securities $250,000 face…
A:
Q: None
A: Detailed explanation:Cash flow from operating activities accounts for cash inflow and outflow from…
Q: Note: This problem is for the 2021 tax year. Ryan Ross (111-11-1112), Oscar Omega (222-22-2223),…
A: Reference;Guaranteed Payments: You can find information on guaranteed payments in the Internal…
Q: What is the average purchase price per unit for the each product? * $85.00 Product QBC Product RBO…
A: The objective of the question is to calculate the average purchase price per unit for each product.…
Q: Please correct answer and don't use hend raiting and step by step solutions
A: To find the price of a call option with the same exercise price, we can use put-call parity, which…
Q: Jamie's regular hourly wage rate is $16, and she receives an hourly rate of $24 for work in excess…
A: Step 1:Step 2:Step 3:Step 4:
Q: Vikrambhai
A: Based on the information provided, the coupon rate of the bond is 4.7%.We can't directly calculate…
Q: Ashvin
A: Approach to solving the question: Here's the approach to solving the questions: 1. Internal Rate of…
Q: please answer in text form and in proper format answer with must explanation , calculation for each…
A: To calculate Javier's benefit under the defined benefit plan provided by DNL Incorporated, we need…
Q: In July, Meers Corporation sold 3,200 units of its only product. Its total sales were $108,800, its…
A: The objective of the question is to construct a contribution format income statement for Meers…
Q: please answer in text form with proper workings and explanation for each and every part and steps…
A: Detailed explanation:1.Revenue is the amount of money that will be received from any of the…
Q: Please do not give solution in image format thanku
A: The objective of the question is to calculate the expected operating income if the company produces…
Q: Thomas has constant MRS between shoes (S) and boots (B) and is indifferent between…
A: We can use the concept of marginal rate of substitution (MRS) and the budget constraint to find…
Q: Question: Comfort Solutions sells a wide range of mattresses to consumers. For the most recent year,…
A: SOLUTION (a) :Traditional System COGS : Under the traditional system where transportation in is…
Q: Assume you want to retire early at age 54. You plan to save using one of the following two…
A: Part 2:Explanation:Step 1: Calculate the out-of-pocket cash investment for Option 1:Under Option 1,…
Q: Financial information related to Montana Interiors for October and November 20Y8 are as follows:…
A: Step 1: Balance sheetMontana InteriorsBalance SheetOctober 31, 20Y8AssetsCash 257800Accounts…
Q: None
A: Here's how to solve it:Calculate the Net Present Value (NPV) at three rates: 12%, 14%, and 16%.The…
Q: sible If you want to buy a business that is growing rapidly, what is the best valuation method to…
A: Detailed explanation: When you are interested in purchasing a business that is found to witness…
Q: None
A: Using PivotTables to Find Jackets Sold in the East RegionBased on the information provided, we can…
Q: pleaser provide correct answer without fail !!!!
A: Discounted Payback Period CalculationThe discounted payback period considers the time value of money…
Q: On January 1, Biden, Inc.'s Work-in-Process Inventory account had a balance of $31,900. During the…
A: Step 1: December 31 Balance in Work in process inventory can be calculated by adding the beginning…
Q: The balance sheet for the company at December 31, 2015, indicated that total assets were $173,000,…
A: Let's delve deeper into each step with more detailed explanations and relevant examples:1. Changes…
Q: The total assets of Lafayette Company are $66,030. Common stock account is $22,480, dividends are…
A: Let's delve deeper into each step with detailed explanations and relevant examples.1. Understanding…
Q: On January 1, Year 1, Montana Mining Equipment LLC purchased a new excavator for $1.5 million with…
A: Step 1: Introduction to leaseA lease is defined as a contractual agreement incorporated between two…
Q: help please answer in text form with proper workings and explanation for each and every part and…
A: RAMOS CO.Direct Materials BudgetFor April, May and June AprilMayJuneJuly Budgeted production…
Q: Hardev
A: To determine how many shares of treasury stock were removed for use during 2023, we need to look at…
Q: Give me step by step solution and explanation.
A: Journal Entries for Sheffield Corporation Stock Option Plan (2019-2023)Here's a breakdown of the…
Q: Riesemberg Medical Devices is allocating next year's budget among its divisions. As a result, the…
A: Hi Student, I hope I understand your needs. If you have any questions or need additional assistance,…
Q: The United States and Venezuela produce corn and rice. The following production possibilities…
A: Step 1: The ability of a firm or an individual to perform an economic activity more efficiently as…
Step by step
Solved in 2 steps
- On 1 July 2015, Ava Ltd acquired all the issued capital of Tracy Ltd for a cash payment of $55000 when the equity of Tracy Ltd was: Share Capital. $26000Retained Earnings $5000Revaluation surplus $4000 At 1 July 2015, all assets of Tracy Ltd were fairly valued. Directors determined that goodwill would be impaired by 10% in 2016, 2017 and 2018. Assume that there are no intra-group transactions or deferred tax consequences from 1 July 2015 to 30 June 2018. Tax rate is 30%. Reporting date is 30 June. Ava has investment in other entities. (a) Prepare an acquisition analysis and determine the amount of goodwill or gain on bargain purchase at acquisition. (Show all workings) (b) Prepare the acquisition elimination journal entries for consolidation as at 30 June 2018. (Number consolidation journal entries by 1, 2, 3....etc; Narration are required) (Show all workings out)Z Corporation has the following transactions relating to its investment during 2020: Jan 5 Acquired 16,000 shares of Y company for P1,500,000 paying an additional P10,000 for brokerage and P5,000 for commission. Feb 14 Received dividends from Y company declared January 10,2020 to the stockholders of records January 31,2020, P16,000. Required:prepare all the necessary entries assuming the investment is 1. Financial asset at Fair Value through profit and loss 2. Financial asset at Fair Value through other comprehensive incomeThe following intragroup transactions took place during the period ended 30 June 2022: Heart Ltd paid $25 000 during the period ended 30 June 2022 as management fees for services provided by Clear Ltd. During the period ended 30 June 2022, Heart Ltd declared a final dividend of $12 000 out of post-acquisition profits. Heart Ltd rented a spare warehouse to Clear Ltd starting from 31 December 2021 for 1 year. The total charge for the rental was $40 000, and Clear Ltd will pay this amount to Heart Ltd at 31 December 2022. Required In relation to the above intragroup transactions: 1. Prepare adjusting journal entries for the consolidation worksheet at 30 June 2022. 2. Explain in detail why you made each adjusting journal entry, whether there is a tax effect and if the NCI share of equity required adjustment.
- DDaniel Ltd purchased 75 per cent of the issued capital and in the process gained control over Riccardo Ltd on 1 July 2020. The fair value of the net assets of Riccardo Ltd at purchase was represented by: Share Capital $3,760,000 Retained Earnings 1,320,000 Daniel Ltd paid cash consideration of $4 000 000 for Riccardo Ltd. During the period ended 30 June 2021, Riccardo Ltd paid management fees of $540 000 to Daniel Ltd and Riccardo Ltd had an operating profit of $980 000. Riccardo Ltd's opening retained earnings at the beginning of the period were $1 460 000. At the end of the period Riccardo Ltd declared a dividend of $90 000. There were no other inter-company transactions. Goodwill was determined to have been impaired by $19 000 during the period. Companies in the group accrue dividends when they are declared by subsidiaries.For the period ended 30 June 2021, what consolidation journal entries are required and what is the non-controlling interest?At the 15 January 2019 , the amount of Retained earnings reported by Moon Corporation is $ 2.500.000 . During 2019 , Moon Corporation and common socks of $ 750,000 , decad and paid cash dividends of $ 140,000 , and declared share dividends of $ 120,000 The amount of net income of 2019 ergsted by Moon Corporation is $ 1,000,000 Moon Corption was required to make a correction of understatement of depreciation expenses in prior years of $ 430,000 ( net of tex ) . Required : How much was the retained camnings reported on 31 December , 2019 ? ( Show your calculational . For the toolbar , press ALT + F10 ( PC ) or ALTHEN F10Sydney Ltd purchased 20% of the shares in Melbourne Ltd on 1 July 2019 for $250,000. During the year Melbourne Ltd announced a netprofit of $60,000 and declared and paid dividends of $20,000.If Sydney Ltd accounted for the investment in Melbourne Ltd using the cost method how much revenue would Sydney Ltd have recogniseddue to its investment in Melbourne Ltd for the year ending 30 June 2020.
- On 1 July 2019, Quick Buck Ltd took control of the assets and liabilities of Eldorado Ltd. Quick Buck Ltd issued 80,000 shares having a fair value of $2.40 per share in exchange for the net assets of Eldorado Ltd. The costs of issuing the shares by Quick Buck Ltd cost $1,600. At this date the statement of financial position of Eldorado Ltd was as follows: Carrying amount Fair value Machinery $40,000 S67,000 Fixtures & fittings 60,000 68,000 Vehicles 35,000 35,000 Current assets 10,000 12,000 Current liabilities (16,000) (18,000) Total net assets S129,000 Share capital (80,000 shares at $1.00 per share) $80,000 General reserve 20,000 Retained earnings 29,000 Total equity $129,000 Required: Prepare the journal entries in the records of Quick Buck Ltd at 1 July 2019 for the acquisition.On 1 July 2019, Quick Buck Ltd took control of the assets and liabilities of Eldorado Ltd. Quick Buck Ltd issued 80,000 shares having a fair value of $2.40 per share in exchange for the net assets of Eldorado Ltd. The costs of issuing the shares by Quick Buck Ltd cost $1,600. At this date the statement of financial position of Eldorado Ltd was as follows: Carrying amount Fair value Machinery $ 40,000 $ 67,000 Fixtures & fittings 60,0000 68,000 Vehicles 35,000 35,000 Current assets 10,000 12,000 Current liabilities (16,000) (18,000) Total net assets $ 129,000 Share capital (80,000 shares at $1.00 per share) $ 80,000 General reserve 20,000 Retained earnings 29,000 Total equity 129,000 Required:Prepare the journal entries in the records of Quick Buck Ltd at 1 July 2019 for the acquisition.On 30 June 2020 Pink Ltd acquired all assets (except for cash) and assumed all liabilities (except for debentures) of Purple Ltd. At this date, the carrying amounts of assets and liabilities of Purple Ltd were at fair value and consisted of: $15,000 32,000 40,000 Cash Accounts payable $9,000 Accounts receivable Debentures (10%) Share capital ($2 shares) Retained earnings 40,000 Inventory 110,000 Shares in listed companies 90,000 48,000 Motor Vehicle 45,000 Accumulated depreciation (15,000) In exchange for these net assets, Pink Ltd agreed to: issue two (2) Pink Ltd shares for every five (5) shares in Purple Ltd. On 30 June 2020 Pink Ltd shares were valued at $5.50 provide sufficient additional cash in order for Purple Ltd to pay out the debentures (including interest) and liquidation costs of $3,500. Required: Prepare an acquisition analysis for Pink Ltd's acquisition of Purple Ltd. wwww
- On 1 July 2019, Brad Ltd acquired all of the assets and liabilities of Pitt Ltd. In exchange for these assets and liabilities, Brad Ltd issued 100 000 shares that at date of issue had a fair value of $5.20 per share. Costs of issuing these shares amounted to $1000. Legal costs associated with the acquisition of Pitt Ltd amounted to $1200. The asset and liabilities of Pitt Ltd at 1 July 2019 were as follows: Carrying amount Fair value Assets $ 2000 10000 64 000 320 000 $ 2000 10000 Cash Accounts receivable 68 000 232 000 Inventories Equipment Accumulated depreciation – equipment (96 000) 240 000 Patents 280 000 Liabilities (16 000) (64 000) Accounts payable (16000) (64 000) Debentures Required (a) Prepare the acquisition analysis at 1 July 2019 for the acquisition of Pitt Ltd by Brad Ltd.1. On 1 January 2019, Pitty Ltd purchased 30% of the shares in Annah Ltd for P700, 000. At this date, Annah Ltd's net assets stood at P1, 4m. At 31 December 2019, Annah Ltd has net assets of P1, 5m. Pitty Ltd sold goods worth P160, 000 to Annah Ltd at a margin of 25%. Half of the goods remained in inventory at the year-end. Calculate the value of the investment in associate as at 31 December 2019?On 1 July 2020, Kent Ltd acquired all the share capital (Ex-dividend) of Sub Ltd for $500,000. The financial statements of Kent Ltd showed the equity of Sub Ltd at that date to be: Share capital — 60 000 $5 shares $300 000 General reserve 40 000 Retained earnings 90 000 All the assets and liabilities of Sub Ltd were recorded at amounts equal to their fair values at that date except the following: Carrying Amount Fair value Land $150 000 $170 000 Plant (Cost $400 000) $300 000 $350 000 Inventory $75 000 $80 000 Additional information: On 10 September 2020, Sub Ltd paid interim cash dividend of $10,000. At acquisition date, 1 July 2020, Sub Ltd has an unrecorded Patent that has a fair value of $20,000, and a Contingent Liability that has a fair value of $15 000. Plant has expected to have a further 5-year life. The tax rate…