On 1 July 2019, Alpha Ltd acquired 80% of the shares (ex div.) of Beta...
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Accounting
On 1 July 2019, Alpha Ltd acquired 80% of the shares (ex div.) of Beta Ltd for $285 000. The NCI owns the remaining 20% of the shares in Beta Ltd. At this date the shareholders equity of Suburb Ltd consisted of:
Share capital
$150 000
Retained earnings
75 000
General reserve
60 000
At this date, all the identifiable assets and liabilities of Suburb Ltd were recorded at amounts equal to their fair values except for the following:
Carrying amount ($)
Fair value
($)
Patents
100 000
130 000
Machinery (cost $140 000)
110 000
118 000
Required: Prepare the acquisition analysis at 1 July 2019, assuming partial goodwill method is used
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