(a) Uhura Ltd acquired all the share capital of McCoy Ltd on 1 Jan 20X8....
50.1K
Verified Solution
Link Copied!
Question
Accounting
(a) Uhura Ltd acquired all the share capital of McCoy Ltd on 1 Jan 20X8. At that time, the fair values of McCoy Ltd's net assets were as follows: The share capital of McCoy Ltd consisted of 100,000 ordinary shares issued for $1 and fully paid. The cost of acquisition under the takeover scheme consisted of 80c cash plus one share in Uhura for every one share in McCoy. On 1 January 20X8 Uhura shares were trading at $1.30 on the ASX. McCoy shares had been trading at $1.40. REQUIRED: Calculate amount of goodwill/bargain (if any) for the acquisition (2 marks). Prepare journal entries for the acquisition of the shares in the books of Uhura Ltd (4 marks)
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.