Question 3Tamarama Ltd acquires $100% of Bronte Ltd on 1 July 2013.Tamarama Ltd pays...Question...

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Accounting

Question 3
Tamarama Ltd acquires $100% of Bronte Ltd on 1 July 2013.Tamarama Ltd pays the shareholders of Bronte Ltd the followingconsideration:
Cash: $70000
Plant and equipment: fair value $250000; carrying amount in thebooks of Tamarama Ltd $17000
Land: fair value $300000; carrying amount in the books ofTamarama Ltd $200000
There are also legal fees of $35000 involved in acquiring BronteLtd.
On 1 July 2013 Bronte Ltd’s statement of financial positionshows total assets of $700000 and liabilities of $300000. The fairvalue of the assets is $800000.
Required:
Has any goodwill been acquired and, if so, how much?
Can Tamarama Ltd revalue the goodwill upwards in a subsequentperiod?

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Answer to Question a Purchase Consideration Paid by Tamarama Ltd To the shareholders of Bronte Ltd Cash 70000 Plant Equipment Fair Value 250000 Land Fair Value 300000 Total Purchase Consideration 620000 Net Asset value of See Answer

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In: AccountingQuestion 3Tamarama Ltd acquires $100% of Bronte Ltd on 1 July 2013.Tamarama Ltd pays...Question 3Tamarama Ltd acquires $100% of Bronte Ltd on 1 July 2013.Tamarama Ltd pays the shareholders of Bronte Ltd the followingconsideration:Cash: $70000Plant and equipment: fair value $250000; carrying amount in thebooks of Tamarama Ltd $17000Land: fair value $300000; carrying amount in the books ofTamarama Ltd $200000There are also legal fees of $35000 involved in acquiring BronteLtd.On 1 July 2013 Bronte Ltd’s statement of financial positionshows total assets of $700000 and liabilities of $300000. The fairvalue of the assets is $800000.Required:Has any goodwill been acquired and, if so, how much?Can Tamarama Ltd revalue the goodwill upwards in a subsequentperiod?