You are required to ;1- Find the assignment question (a Word file) and read it carefully2-...

Question

You are required to ;1- Find the assignment question (a Word file) and read it carefully2- Provide"Acquisition Analysis"3- Provide"Business Combination Valuation"worksheet adjustmentjournals4-Provide"Pre-Acquisition"worksheet adjustmentjournals5- Find "Assignment worksheet Template" file on Moodle andcomplete "Worksheet"6-Aggregate all answers in anExcelORWordformat

Aklank · Accepted Answer

1- Acquisition Analysis at 30 June 2018.
At 1 June 2018:
Net fair value of identifiable assets 
and liabilities of Darren Ltd			= ($54 000 + $36 000 + $18 000) (equity)
 						   + $1 500 (1 – 30%) (plant) 
 						   + $2 000 (1 – 30%) (inventory)
 						= $110,450
Consideration transferred			= $110,000
Gain on bargain purchase			=$450
2- Worksheet Adjustment journal entries at 30 June 2018. 
1. Business combination valuation entries
	Accumulated depreciation	Dr	7,500
		Plant & machinery	Cr		6,000
		Deferred tax liability	Cr		450
		Business combination valuation reserve	Cr		1,050
	Depreciation expense	Dr	300
		Accumulated depreciation	Cr		300
		(1/5 x $1 500)
	Deferred tax liability	Dr	90
		Income tax expense	Cr		90
		(30% x $300)
	Cost of sales	Dr	1,800
		Income tax expense	Cr		540
		Transfer from business combination	Cr	                                    1,

You are required to ; 1- Find the assignment question (a Word file) and read it carefully 2- Provide"Acquisition Analysis" 3- Provide"Business Combination Valuation"worksheet adjustmentjournals...

Solution

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment