Solved

Sigmund Ltd Acquires All the Issued Capital of Freud Ltd

Question 55

Multiple Choice

Sigmund Ltd acquires all the issued capital of Freud Ltd for a cash payment of $1,900,000 on 30 June 2004. The financial statements of both entities on 30 June 2005 are:
Sigmund Ltd acquires all the issued capital of Freud Ltd for a cash payment of $1,900,000 on 30 June 2004. The financial statements of both entities on 30 June 2005 are: The fair value of the net tangible assets of Freud Ltd on 30 June 2004 was $1,332,000. The equity of Freud at that time was made up of share capital of $1,172,000 and retained earnings of $160,000. Goodwill had been determined to have been impaired by $56,800 during the period. During the period ended 30 June 2005 there were no intragroup transactions. Which of the following consolidated financial statements is correct? A) B) C) D) E) None of the given answers.
The fair value of the net tangible assets of Freud Ltd on 30 June 2004 was $1,332,000. The equity of Freud at that time was made up of share capital of $1,172,000 and retained earnings of $160,000. Goodwill had been determined to have been impaired by $56,800 during the period. During the period ended 30 June 2005 there were no intragroup transactions. Which of the following consolidated financial statements is correct?


A) Sigmund Ltd acquires all the issued capital of Freud Ltd for a cash payment of $1,900,000 on 30 June 2004. The financial statements of both entities on 30 June 2005 are: The fair value of the net tangible assets of Freud Ltd on 30 June 2004 was $1,332,000. The equity of Freud at that time was made up of share capital of $1,172,000 and retained earnings of $160,000. Goodwill had been determined to have been impaired by $56,800 during the period. During the period ended 30 June 2005 there were no intragroup transactions. Which of the following consolidated financial statements is correct? A) B) C) D) E) None of the given answers.
B) Sigmund Ltd acquires all the issued capital of Freud Ltd for a cash payment of $1,900,000 on 30 June 2004. The financial statements of both entities on 30 June 2005 are: The fair value of the net tangible assets of Freud Ltd on 30 June 2004 was $1,332,000. The equity of Freud at that time was made up of share capital of $1,172,000 and retained earnings of $160,000. Goodwill had been determined to have been impaired by $56,800 during the period. During the period ended 30 June 2005 there were no intragroup transactions. Which of the following consolidated financial statements is correct? A) B) C) D) E) None of the given answers.
C) Sigmund Ltd acquires all the issued capital of Freud Ltd for a cash payment of $1,900,000 on 30 June 2004. The financial statements of both entities on 30 June 2005 are: The fair value of the net tangible assets of Freud Ltd on 30 June 2004 was $1,332,000. The equity of Freud at that time was made up of share capital of $1,172,000 and retained earnings of $160,000. Goodwill had been determined to have been impaired by $56,800 during the period. During the period ended 30 June 2005 there were no intragroup transactions. Which of the following consolidated financial statements is correct? A) B) C) D) E) None of the given answers.
D) Sigmund Ltd acquires all the issued capital of Freud Ltd for a cash payment of $1,900,000 on 30 June 2004. The financial statements of both entities on 30 June 2005 are: The fair value of the net tangible assets of Freud Ltd on 30 June 2004 was $1,332,000. The equity of Freud at that time was made up of share capital of $1,172,000 and retained earnings of $160,000. Goodwill had been determined to have been impaired by $56,800 during the period. During the period ended 30 June 2005 there were no intragroup transactions. Which of the following consolidated financial statements is correct? A) B) C) D) E) None of the given answers.
E) None of the given answers.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q44: The preparation of consolidated financial statements:
A) obviates

Q45: The lack of a direct link between

Q46: In the situation in which a subsidiary

Q47: A subsidiary:
A) is excluded from consolidation because

Q49: After initial recognition,goodwill is measured in which

Q50: Arthur Ltd acquires all the issued capital

Q52: A former loophole (now closed)that existed under

Q53: Where the controlled entity's non-current assets were

Q53: 'Control' exists when the parent owns less

Q59: Gingimup Ltd purchased all the equity of

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents