On December 31,20X2,Bates Ltd.purchased 75% of the outstanding common shares of Ted Ltd.for $1,050,000 in cash.The balance sheets of Bates and Ted immediately before the acquisition were as follows (in 000s):

At the time of acquisition,Ted's capital assets still had a remaining useful life
Of ten years.What is the amount of the adjustment to the net book value of capital assets on the consolidated statement of financial position at December 31,20X2 under the parent-company approach?

Question

On December 31,20X2,Bates Ltd.purchased 75% of the outstanding common shares of Ted Ltd.for $1,050,000 in cash.The balance sheets of Bates and Ted immediately before the acquisition were as follows (in 000s):

At the time of acquisition,Ted's capital assets still had a remaining useful life
Of ten years.What is the amount of the adjustment to the net book value of capital assets on the consolidated statement of financial position at December 31,20X2 under the parent-company approach?

Quizplus · Accepted Answer

The Answer of On December 31,20X2,Bates Ltd.purchased 75% of the outstanding common shares of Ted Ltd.for $1,050,000 in cash.The balance sheets of Bates and Ted immediately before the acquisition were as follows (in 000s):

At the time of acquisition,Ted's capital assets still had a remaining useful life
Of ten years.What is the amount of the adjustment to the net book value of capital assets on the consolidated statement of financial position at December 31,20X2 under the parent-company approach?