Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. bogue limited acquired control of cornwall industr

Bogue Limited acquired control of Cornwall Industries Limited (CIL) by offering 2 shares in Bogue...

90.2K

Verified Solution

Question

Accounting

image
Bogue Limited acquired control of Cornwall Industries Limited (CIL) by offering 2 shares in Bogue Limited for every 3 shares held in CIL, Bogue Limited acquired 5,400,000 shares in CIL and at that date each share in Bogue Limited had a market value of $6.30. An additional sum of $4,600,000 was to be paid three years from now (the relevant discount rate is 9%). The identifiable assets and liabilities of Cornwall Industries Limited were: Assets Property, Plant and Equipment Inventory & Receivables Trade Payables Land Bank overdraft Loans Value $ 7,000,000 2,000,000 6,000,000 22,000,000 1,100,000 4,200,000 Required: (6 marks) a) Calculate the goodwill acquired by Bogue Limited

Answer & Explanation Solved by verified expert
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!
Become a Member

Other questions asked by students