Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on 1 july 2021, xero ltd acquired 90% of the issue

On 1 July 2021, Xero Ltd acquired 90% of the issued shares of Accounting Ltd...

70.2K

Verified Solution

Question

Accounting

On 1 July 2021, Xero Ltd acquired 90% of the issued shares of Accounting Ltd for $750,000 when the equity of Accounting Ltd consisted of: Share Capital $400,000 Retained Earnings $150,000 Asset Revaluation reserve $50,000 At the acquisition date all the identifiable assets and liabilities of Accounting Ltd were recorded at fair value except for the following assets:

Carrying Amount Fair Value Equipment (Cost $100,000) $160,000 $200,000

Land $560,000 $700,000 The NCI at acquisition date is measured based on the proportionate share of the identifiable assets and liabilities in Accounting Ltd.

The tax rate is 30%.

Required Prepare Acquisition analysis as at 1 July 2021

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