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15 marks Question 1 (allow about 20 minutes) On 1 July 2015, Bill Ltd acquired all the shares of Ben Ltd for $1,100,000. On that date, the Statement of Financial Position of Ben Ltd consisted of: Ben Ltd Statement of Financial Position as at 1 July 2015 $ Cash 25,000 Accounts payable Inventory 235,000 Other Liabilities Current Assets 260,000 Total Liabilities $ 180,000 407,000 587,000 Land Property Plant & Equipment Less: Accum. Depreciation Non-current Assets 325,000 Share Capital 1,350,000 General Reserve -440,000 Retained Earnings 1,235,000 Total Equity 250,000 250,000 408,000 908,000 Total Assets 1,495,000 Total Equity and Liabilities 1,495,000 All the identifiable assets and liabilities of Ben Ltd were at fair value on the day of acquisition, except for the following: Fair Value $ 260,000 437 500 975,000 Inventory Land Property Plant & Equipment Additional information: The incomat.2007 All the identifiable assets and liabilities of Ben Ltd were at fair value on the day of acquisition, except for the following: Fair Value Inventory Land Property Plant & Equipment 260,000 437,500 975,000 Additional information: . The income tax rate is 30% Required: Consider each of the following as independent situations unless told otherwise. Clearly set out all supporting calculations. (a) Provide the acquisition analysis in accordance with AASB 3 Business Combinations to determine the goodwill or gain on bargain purchase. (9 marks) (b) This time assume that Bill Ltd acquired all the shares of Ben Ltd for $1,100,000 on a cum div. basis and that the Other Liabilities of Ben Ltd included a dividend payable of $80,000. Discuss the impact this would have on the acquisition analysis you provided above in (a) and provide a revised figure for goodwill or gain on bargain purchase. (3 marks) (c) This time assume that Bill Ltd acquired only 90% of the shares of Ben Ltd for $1,100,000 and that it uses the partial goodwill method. Calculate the goodwill or gain on bargain purchase (3 marks) 31 Ihrersity of Southern Cueensland

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