Refer to the financial statements of Campbell Soup Company:

Required:

a. As of July 28, Year...

Question

Refer to the financial statements of Campbell Soup Company:

Required:

a. As of July 28, Year 11, Campbell owned 33% of Arnotts Limited. Explain where Campbell reports the amounts representing this investment.

b. Note 18 contains disclosures regarding the market value of the company"s investment in Arnotts Limited. Explain whether this market value is reflected
 in Campbell"s financial statements beyond the disclosures referred to.

c. In July of Year 11, Campbell acquired the remaining shares of Campbell Canada. This is in addition to one other acquisition during Year 11. Describe
 what the difference between the purchase price paid for these acquisitions and the fair market value of the acquired net assets implies for analysis
 purposes.

d. Prepare a composite journal entry recording the total Year 11 acquisitions.

e. Explain the likely causes of changes in the cumulative translation adjustment accounts for (1) Europe and

(2) Australia.

David · Accepted Answer

a. They are reported in “other assets” [166] at an amount of $155.8 million under investments in 
affiliates, which also includes $28.3 million as goodwill.  
 
b. No, disclosure is limited to this note. 
 
c. These acquisitions indicate that of the $180.1 million paid, $132.3 million is for intangibles,

Refer to the financial statements of Campbell Soup Company: Required: a. As of July 28, Year 11, Campbell owned 33% of Arnotts Limited. Explain where Campbell reports the amounts representing this...

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