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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
Paid by S
Dividend 1,000 Paid to
$'000 Paid to
$'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
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.
Prepare all necessary consolidation journal entries to equity account for A Pte
Ltd for the year 2002.
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This document was uploaded on 04/07/2014.
- Spring '14