ACCT4104
Advanced
financial
accounting
Tutorial Ch.14 –
Ex14.3, Ex14.5
, Ex 14.3 part 1
Determining the fair value of equity
issued by the acquirer
, Ex 14.3 Determining the fair value of equity issued by the acquirer
1 December 2016, Trout Ltd acquired all the assets and liabilities of Dory Ltd, with Trout
Ltd issuing 100,000 shares to acquire them. The fair values of Dory Ltd's assets
and liabilities at this date were:
Cash $50,000
Furniture and fittings
20,000
Accounts receivable 5,000
Plant 125,000
Accounts payable 15,000
Current tax liability8,000
Annual leave payable 2,000
e financial year for Trout Ltd is January to December.
Advanced
financial
accounting
Tutorial Ch.14 –
Ex14.3, Ex14.5
, Ex 14.3 part 1
Determining the fair value of equity
issued by the acquirer
, Ex 14.3 Determining the fair value of equity issued by the acquirer
1 December 2016, Trout Ltd acquired all the assets and liabilities of Dory Ltd, with Trout
Ltd issuing 100,000 shares to acquire them. The fair values of Dory Ltd's assets
and liabilities at this date were:
Cash $50,000
Furniture and fittings
20,000
Accounts receivable 5,000
Plant 125,000
Accounts payable 15,000
Current tax liability8,000
Annual leave payable 2,000
e financial year for Trout Ltd is January to December.
