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Answer Key Quiz

The document contains financial calculations related to the valuation of two entities, A and B, including consideration, fair value of net assets, and goodwill. It provides detailed breakdowns of assets, liabilities, and equity for both entities, along with calculations for non-controlling interests and bargain purchases. Additionally, it summarizes the total assets and liabilities for each entity, highlighting key financial metrics and outcomes.

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Jonel Novo Araneta
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0 views5 pages

Answer Key Quiz

The document contains financial calculations related to the valuation of two entities, A and B, including consideration, fair value of net assets, and goodwill. It provides detailed breakdowns of assets, liabilities, and equity for both entities, along with calculations for non-controlling interests and bargain purchases. Additionally, it summarizes the total assets and liabilities for each entity, highlighting key financial metrics and outcomes.

Uploaded by

Jonel Novo Araneta
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Question 1

Consideration
Shares (10000*20) 200,000
Bonds (500000*1.1) 550,000
Total 750,000
Less: Fair value of net assets
Current assets 1,300,000
Non current assets 1,000,000
Total 2,300,000
Current liabilities (600,000)
Non-current liabilities (500,000) 1,200,000
Bargain (450,000)

Question 2
Entiry A @book value
Current assets 1,000,000
Non current assets 2,000,000
Less:
Acquisition related cost (70,000)
Bond issue cost (20,000)
Share issuance (10,000)
Entiry B @ fair value
Current assets 1,300,000
Non current assets 1,000,000
Total Assets 5,200,000

Question 3
Entiry A
Current liabilities 200,000
Non-current liabilities 300,000
Bonds (550000-20000) 530,000
Entiry B
Current liabilities 600,000
Non-current liabilities 500,000
Total liabilities 2,130,000

Question 4
Ordinary shares (500,000+(10000*10) 600,000
Share premium
(1200000)+(10000*(20-10))-10000 1,290,000
Retained earnings
(800000)+450000-70000 1,180,000
Total Equity 3,070,000
Question 5
Book value ( net assets) 290,700
Inventory 6,630
Equipment 38,450
Patent 7,650
Fair value of net assets 343,430

Controlling % (247095/290700) 85%


NCI Rate (43605/290700) 15%

85% 15% Total


Consideration + NCI 317,050 52,950 370,000
FV net assets 291,916 51,515 343,430
Goodwill 25,135 1,436 26,570

Consideration = (247095+69955) 317050


NCI = ((317050-17000)/85%)*15% 52,950

Question 6
Book value ( net assets) 290,700
Inventory 6,630
Equipment 38,450
Patent 7,650
Fair value of net assets 343,430

Controlling % (247095/290700) 85%


NCI Rate (43605/290700) 15%

85% 15% Total


Consideration + NCI 317,050 51,515 368,565
FV net assets 291,916 51,515 343,430
Goodwill 25,135 - 25,135

Consideration = (247095+69955) 317050


NCI = (343430*.15) 51,515

Question 7
Book value ( net assets) 290,700
Inventory 6,630
Equipment 38,450
Patent 7,650
Fair value of net assets 343,430

Controlling % (247095/290700) 85%


NCI Rate (43605/290700) 15%

85% 15% Total


Consideration + NCI 317,050 55,000 372,050
FV net assets 291,916 51,515 343,430
Goodwill 25,135 3,486 28,620

Consideration = (247095+69955) 317050


NCI = 55,000
Book value ( net assets) 1,500,000
Asset understated 700,000
Fair value of net assets 2,200,000

80% 20% Total


Consideration + NCI 2,000,000 500,000 2,500,000
FV net assets 1,760,000 440,000 2,200,000
Goodwill 240,000 60,000 300,000

NCI = (2,000,0000)/80% * 20%

Question 8
Peidmiont @book value
Assets 5,000,000
Skelton @ fair value 2,700,000 (2M+700k)
Goodwill 300,000
Total Assets 8,000,000

Question 9
Peidmiont @book value
Liablities 1,500,000
Skelton @ fair value 500,000
Goodwill -
Total liabilties 2,000,000

Question 10
Capital stock (2500000)+(10000*40) 2,900,000
APIC (2000000)-(10000*40) 1,600,000
RE 1,000,000
NCI 500,000
Total Equity 6,000,000
Question 1 450,000 Bargain
Question 2 5,200,000
Question 3 2,130,000
Question 4 3,070,000
Question 5 26,570
Question 6 25,135
Question 7 28,620
Question 8 8,000,000
Question 9 2,000,000
Question 10 6,000,000

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