Solution
Riddhi answered on
Jul 12 2021
Answer to Question 1 –
1. 42,000
2. 2,96,800
3. 3,47,200
4. 6,88,800
5. 7,84,000
6. 56,000
Answer to Question 2 –
Consideration – 7,23,600
Journal entry
Receivables
1,37,500
Inventory
82,000
Copyrights
5,11,500
Patented technology
7,13,000
Goodwill
2,13,000
To Cu
ent liabilities
2,38,000
To Long-term liabilities
6,57,200
To Cash
7,23,600
To Contingent consideration
38,200
(Being business acquired)
Professional Fee-expense
1,44,000
To Cash
1,44,000
(Being paid to merchant bankers)
Consideration – 8,36,900
Journal entry
Receivables
1,37,500
Inventory
82000
Copyrights
511500
Patented technology
7,13,000
Goodwill
3,26,300
To Cu
ent liabilities
2,38,000
To Long-term liabilities
6,57,200
To Cash
8,36,900
To Contingent consideration
38,200
(Being business acquired)
Professional Fee-expense
1,44,000
To Cash
1,44,000
(Being paid to merchant bankers)
Answer to Question 3 assuming acquired at fair value –
1. $85,000
2. 6,50,000
3. 5,55,000
4. 12,00,000
5....