THIS THIS MPA505 Corporate Accounting Question 7 Question 6 [16 marks] Not yet answered Cougar...
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THIS THIS MPA505 Corporate Accounting Question 7 Question 6 [16 marks] Not yet answered Cougar Lid acquired for $4 300 000 cash all of the issued share capital of Lion Lid on 10 July 2022. At the date Marked out of of acquisition, the equity section of the statement of financial position of the Lion Lid is presented below: 16.00 Share Capital 2 500 000 Flag question Retain Earnings 600 000 On 10 July 2022, the date of acquisition, the carrying amount, and related fair value of assets, liabilities, and equity of Lion Lid are included in the below table: Cash 1,225,000 Nill Accounts receivable 350,000 Nil Inventory 425,000 520,000 Land 2,500,000 3,200,000 Plant 1,500,000 1,800,000 Loans payable 2,600,000 2,800,000 Accounts payable 260,000 320,000 Contingent liabilities 40,000 50,000 Required a) Calculate the goodwill or gain on acquisition. Ignore any deferred tax considerations. (10 marks) b) Explain with an example the internally generated goodwill. (3 marks) c) Based on the international accounting standards explain when goodwill should be recognised as an intangible asset
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