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Acquisition Analysis of Y-s Ltd

This is the second part of assessment task 2. You can choose to do Part B either as an individual or you can pair up with another student who is currently enrolled in the unit.

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Added on  2022-10-19

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Preparation of acquisition analysis at 1 July 2017 Net Fair Value of identifiable Assets and Net fair value of identifiable assets and liabilities of Y’s Ltd = Equity ($13000+$5000+$4050) Land Add: $2000 (1-30%) Plant add: $1000 (1-30%) Inventory Add: 800 (1-30%) Brands $1200 (1-30%) Liabilities 1500 (1-30%) Goodwill $500 Total = 1050 Calculation of Unrecorded Goodwill Consideration transferred 24,600 Less Net fair value of identifiable assets and liabilities

Acquisition Analysis of Y-s Ltd

This is the second part of assessment task 2. You can choose to do Part B either as an individual or you can pair up with another student who is currently enrolled in the unit.

   Added on 2022-10-19

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Preparation of acquisition
analysis at 1 July 2017
Net Fair Value of identifiable Assets
and
Net fair value of identifiable assets and
liabilities of Y’s Ltd =
Equity ($13000+$5000+$4050)
Land Add: $2000 (1-30%)
Plant add: $1000 (1-30%)
Inventory Add: 800 (1-30%)
Brands $1200 (1-30%)
Liabilities 1500 (1-30%)
Goodwill $500
Total = $24,000
Calculation of
Unrecorded
Goodwill
Consideration
transferred 24,600
Less Net fair value of
identifiable assets
and liabilities of Y’s
Ltd -24,000
Goodwill acquired 600
Less Goodwill
recorded -500
Unrecorded
goodwill 100
Worksheet entries
at 30 June 2019
Business combination valuation entries
Acquisition Analysis of Y-s Ltd_1
1 Particular
De
bit
Cr
edi
t
Depreciation Expenses
10
0
Gain or Loss on sales of non
Currenmt Assets'
70
0
Retained Earning
14
0
To Income Tax
24
0
To Transfer from Business
Combination Reverse
70
0
(To record deprciation
expense and related tax)
2 Brands
12
00
To Deferred Tax Liabilities
36
0
To Business Combination
Valuation Reverse
84
0
(To record brands and
related deferred tax liability)
3
Transfer from Business
Combination Valuation Reserve
10
50
Income Tax Expense
45
0
To Damages Expense
15
00
(To record damages expense
and related tax expense)
4
Accumulated Impairment
Losses – Goodwill
13
00
To Goodwill
12
00
To Business Combination
Valuation Reserve
10
0
(To record impairment losses)
Pre-acquisition
entries
At 1st July 2017
1 Particular De Cr
Acquisition Analysis of Y-s Ltd_2
bit
edi
t
Share Capital
13
00
0
General Reserve
50
00
Retained Earning (1/7)
40
50
Business Combination
Valuation Reserve
25
50
To Share in Y Limited
24
60
0
To record shares in Y Limited)
At 30th June 2019
Particular
De
bit
Cr
edi
t
Retained Earnings (1/7 /18)
(Working below)
80
10
Share Capital
13
00
0
General Reserve 30
00
Business Combination Valuation
Reserve
59
0
To Shares in ‘Y’
limited
24
60
0
(To record shares in Y Limited)
Transfer from Business
Combination Valuation Reserve
70
0
To Business
Combination Valuation Reserve
70
0
(To record sale of Plant)
Business Combination Valuation
Reserve
10
50
To Transfer from 10
Acquisition Analysis of Y-s Ltd_3

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