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Cars Led acquired 65%, of Trucks Ltd for a cost of 5650,000, when the squty of Trucks Lad cOnSistad of Share Capital general Reserve Retained Eamings $210.000 300,000 $80,000 All the identifiable assets and liabilities of Cars Ltd were recorded at fair value except for followino Vehicles (cost $550.000) Equipment Carrying Amount $450,000 $80,000 Fair Value $490,000 $90,000 Required: Prepare the journal entries for the pre-acquisition stage (i.e., Stage 1) of recording the pre-acquisition elimination and Non-Controlling Interest both using the partial goodwill method

Cars Led acquired 65%, of Trucks Ltd for a cost of 5650,000, when the squty of Trucks Lad cOnSistad of Share Capital general Reserve Retained Eamings $210.000 300,000 $80,000 All the identifiable assets and liabilities of Cars Ltd were recorded at fair value except for followino Vehicles (cost $550.000) Equipment Carrying Amount $450,000 $80,000 Fair Value $490,000 $90,000 Required: Prepare the journal entries for the pre-acquisition stage (i.e., Stage 1) of recording the pre-acquisition elimination and Non-Controlling Interest both using the partial goodwill method

FINANCIAL ACCOUNTING
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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Cars Led acquired 65%, of Trucks Ltd for a cost of 5650,000, when the squty of Trucks Lad
cOnSistad of
Share Capital
general Reserve
Retained Eamings
$210.000
300,000
$80,000
All the identifiable assets and liabilities of Cars Ltd were recorded at fair value except for
followino
Vehicles (cost $550.000)
Equipment
Carrying
Amount
$450,000
$80,000
Fair
Value
$490,000
$90,000
Required:
Prepare the journal entries for the pre-acquisition stage (i.e., Stage 1) of recording the pre-acquisition elimination and Non-Controlling Interest both using the partial goodwill method

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