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3 years ago

The P Ltd acquires all issued capital of the S Ltd for a consideration of $1,000,000 cash and 800,000 shares each

Business

1 answer:

gregori [183]3 years ago

8 0

Answer: See attachment

Explanation:

Check the attachment

For (a),

Common shares = $800,000 × 1.5

= $1,200,000

b. Fair value of assets = $2640000

Less: Fair value of liabilities = ($720000)

Net value of S. Ltd = $1920000

Purchase consideration = $220000

Goodwill on acquisition = $2,200,000 - $1,920,000 = $280,000

d. Fair value of assets acquired = $2,640,000

Less: fair value of liabilities acquired = ($720,000)

Net value of S. Ltd = $1,920,000

Purchase consideration = 1,000,000 + (400,000 × 1.5) = 1,000,000 + 600,000 = 1,600,000

Bargain purchase = $1,920,000 - $1,600,000 = $320,000

See attachment for further explanation

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If the supply curve and the demand curve for lettuce both shift to the left by an equal amount, what can we say about the result

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3 years ago

Mr. Boyd and Ms. Tuck decide to form a new corporation named BT Inc. Mr. Boyd transfers $10,000 cash and business inventory ($20

kicyunya [14]

Answer:

1. Mr Boyd's share = 400, Ms Tuck = 800

2. Mr Boyd's realised gain = $16,800, recognized gain = $0, basis = $13200

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Explanation:

Total share = $1200

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Total value = 30000

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Total = 30000

Adjusted basis = 3200

Total tax basis = 10000+3200

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= 18500

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4 years ago

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tigry1 [53]

Answer:

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