On 1 July 2021 Salzburg Ltd acquired the shares of Vienna Ltd for $60 000. At acquisition date, the capital of Vienna Ltd consisted of 44 000 ordinary shares each fully paid at $1. There were retained earnings of $4 000. All the identifiable assets and liabilities of Vienna Ltd were recorded at amounts equal to fair value except for: Carrying Fair Amount Value $12 000 $15 000 Inventory Machinery (cost $100 000) 80 000 82 000 Land 60 000 70 000 Salzburg Ltd Balance Sheet as at 1 July 2021 Share capital $134 000 $41 400 Retained earnings $15 400 Cash at bank $100 000 Land $60 000 Investment in Wayne Ltd

On 1 July 2021 Salzburg Ltd acquired the shares of Vienna Ltd for $60 000. At acquisition date, the capital of Vienna Ltd consisted of 44 000 ordinary shares each fully paid at $1. There were retained earnings of $4 000. All the identifiable assets and liabilities of Vienna Ltd were recorded at amounts equal to fair value except for: Carrying Fair Amount Value $12 000 $15 000 Inventory Machinery (cost $100 000) 80 000 82 000 Land 60 000 70 000 Salzburg Ltd Balance Sheet as at 1 July 2021 Share capital $134 000 $41 400 Retained earnings $15 400 Cash at bank $100 000 Land $60 000 Investment in Wayne Ltd

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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