On 31 December 20x7, P Ltd paid $500 million to acquire 80% of S Ltd...
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On 31 December 20x7, P Ltd paid $500 million to acquire 80% of S Ltd when S Ltds net assets at fair value were represented by share capital of $100 million and retained profit of $400 million. On the same day, P Ltd paid $200 million to acquire 40% of A Ltd when A Ltds net assets at fair value were represented by share capital of $100 million and retained profit of $200 million. As of 31 December 20x8, $50 million of the goodwill on acquisition of S Ltd and $20 million of the goodwill on acquisition of A Ltd were deemed to be impaired. For 20x8 consolidation, the consolidation journal entry for goodwill impairment should be: Group of answer choices a."Dr Goodwill impairment $50 million; Cr Goodwill $50 million, and Dr Share of associates profit $8 million; Cr Investment in associate $8 million." b. "Dr Goodwill impairment $40 million; Cr Goodwill $40 million, and Dr Share of associates profit $8 million; Cr Investment in associate $8 million." c."Dr Goodwill impairment $50 million; Cr Goodwill $50 million, and Dr Share of associates profit $20 million; Cr Investment in associate $20 million." d."Dr Goodwill impairment $70 million; Cr Goodwill $70 million." e. None of the listed choices.
On 31 December 20x7, P Ltd paid $500 million to acquire 80% of S Ltd when S Ltds net assets at fair value were represented by share capital of $100 million and retained profit of $400 million. On the same day, P Ltd paid $200 million to acquire 40% of A Ltd when A Ltds net assets at fair value were represented by share capital of $100 million and retained profit of $200 million. As of 31 December 20x8, $50 million of the goodwill on acquisition of S Ltd and $20 million of the goodwill on acquisition of A Ltd were deemed to be impaired. For 20x8 consolidation, the consolidation journal entry for goodwill impairment should be:
Group of answer choices
a."Dr Goodwill impairment $50 million;
Cr Goodwill $50 million,
and Dr Share of associates profit $8 million;
Cr Investment in associate $8 million."
b. "Dr Goodwill impairment $40 million;
Cr Goodwill $40 million,
and Dr Share of associates profit $8 million;
Cr Investment in associate $8 million."
c."Dr Goodwill impairment $50 million;
Cr Goodwill $50 million,
and Dr Share of associates profit $20 million;
Cr Investment in associate $20 million."
d."Dr Goodwill impairment $70 million;
Cr Goodwill $70 million."
e. None of the listed choices.
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