Acquisition of s pte ltd and a pte ltd s pte ltd

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Unformatted text preview: value Estimated economic life of goodwill on consolidation A Pte Ltd 80% 50% 01-Jan-01 01-Jan-02 $ 2,000,000 $ 600,000 $ 3,000,000 $ 1,000,000 10 years 5 years 2) Tax exempt Dividend income paid by S in Year 2002 Total Paid by S $'000 Dividend 1,000 Paid to H Ltd $'000 Paid to M/I $'000 800 200 3) Income Tax rates Year 2001 - 24.5% Year 2002 - 22.0% REQUIRED: 1) Compute the amount of goodwill or negative goodwill of H group on the date of acquisition of: a) 80% equity interest in S Pte Ltd b) 50% equity interest in A Pte Ltd (2 marks) 2) Compute the goodwill and additional leasehold amortisation expense per year for S Pte Ltd and A Pte Ltd either using the benchmark or allowed alternative method. (6 marks) 3) Prepare all necessary consolidation journal entries to consolidate S Pte Ltd at the date of acquisition either using the benchmark or allowed alternative method. 14 ACCT201 (6 marks) 4) Prepare the additional consolidation journal entries to consolidate S Pte Ltd for the year 2002. (4 marks) 5) Prepare all necessary consolidation journal entries to equity account for A Pte Ltd for the year 2002. (3 marks) 6) P...
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This document was uploaded on 04/07/2014.

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