Dr 840000 buildings dr 550000 farmequipment dr 364000

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Unformatted text preview: of Macleay Ltd, and derecognise Land as part of consideration) OR (2) Accounts receivable Dr 125 000 Land Dr 840 000 Buildings Dr 550 000 Farm equipment Dr 364 000 Irrigation equipment Dr 225 000 Vehicles Dr 124 000 Goodwill Dr 87 500 Cr 80 000 Accounts payable Share capital Cr 1 400 000 Cash Cr 615 500 Proceeds on sale of Land Cr *220 000 (Acquisition of net assets of Macleay Ltd, and recognise FV of Land given up as proceeds (income) ) Carrying amount of Land Dr *80 000 Land Cr 80 000 (Derecognise land that has been given up as part of consideration ) * The proceeds 220,000 less the CA 80,000 result in an overall gain of 140,000 in the income statement) 5 Exercise 12.13 (Cont’d) Acquisition‐related expenses Cash (Payment of acquisition‐related costs) Share capital Cash (Share issue costs) Dr Cr 25 000 25 000 Dr Cr 18 000 18 000 Problem 12.3 A. Acquisition Analysis: Magnetic Ltd – Mornington Ltd Net fair value of identifiable assets and liabilities acquired: Land & buildings $60 000 Plant & machinery 50 000 Office equipment 4 000 Shares in listed companies 15 000 Accounts receivable 26 000 Inventory 54 000 209 000 Accounts payable 14 000 Bank loan 16 000 30 000 Net fair value of identifiable asset...
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