Homework Help is Here – Start Your Trial Now!
Business
Accounting
P Limited obtained control with the acquisition of an 80% equity interest in the share capital of S Limited on 1 January20.9 and paid R140 000 cash to the sellers of the shares (previous shareholder(s)) to settle the purchase price. At acquisition date the equity of S Limited consisted of the following: Share capital (100 000 shares) R100 000 Retained earnings R50 000 What amount would be recognized as Goodwill in proforma consolidation journals of P Ltd? Select one: a. R20 000 b. R30 000 c. R50 000 d. R10 000

P Limited obtained control with the acquisition of an 80% equity interest in the share capital of S Limited on 1 January20.9 and paid R140 000 cash to the sellers of the shares (previous shareholder(s)) to settle the purchase price. At acquisition date the equity of S Limited consisted of the following: Share capital (100 000 shares) R100 000 Retained earnings R50 000 What amount would be recognized as Goodwill in proforma consolidation journals of P Ltd? Select one: a. R20 000 b. R30 000 c. R50 000 d. R10 000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

P Limited obtained control with the acquisition of an 80% equity interest in the share capital of S Limited on 1 January20.9 and paid R140 000 cash to the sellers of the shares (previous shareholder(s)) to settle the purchase price.
At acquisition date the equity of S Limited consisted of the following:
Share capital (100 000 shares) R100 000
Retained earnings R50 000
What amount would be recognized as Goodwill in proforma consolidation journals of P Ltd?
Select one:
a.
R20 000
b.
R30 000
c.
R50 000
d.
R10 000 

Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting for Corporate restructuring
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS