On January 1 2011 Fox acquired 70 of the shares #13

On January 1, 2011, Fox acquired 70% of the shares (cum div.) of Logan for $141,950. At this
date, the equity of Logan consisted of: Share capital .......... ...$100,000Retained earnings..........
56,000Cumulative other comprehensive income.. 9,000 Logan’s records showed a dividend
payable at January 1, 2011, of $10,000. The dividend was paid on April 1, 2011. A comparison
of the carrying amounts and fair values of Logan’s assets at January 1, 2011, revealed the
following:Both plant and vehicles were expected to have a further ?ve-year life, with bene?ts
being received evenly over those periods. Logan had not recorded an internally generated
brand name for an item that was considered by Fox to have a fair value of $20,000. The brand
name is regarded as having an inde?nite useful life. At December 31, 2011, goodwill was
considered to be impaired by $1,000, and a further impairment loss of $2,000 was recognized in
2012. Fox uses the full goodwill method. The fair value of the non-controlling interest at January
1, 2011, was $57,000 based on the market value of the Logan shares. Both companies pay tax
at a rate of 30%. Additional information: 1. The dividends paid and declared since January 1,
2011, are: • $10,000 dividend declared in December 2011, paid in April 2012 • $5,000 dividend
declared in December 2012, paid in March 2013 • $8,000 dividend paid in October 2013 2. The
plant on hand at January 1, 2011, was sold on December 31, 2013. 3. The cumulative other
comprehensive income account re?ects movements in the fair values of ?nancial assets. The
balances of this account at January 1, 2013, were $4,000 (Fox) and $11,000 (Logan). 4. On
December 31, 2013, the ?nancial data of both companies were:Required Prepare the
consolidated ?nancial statements of Fox as at December 31, 2013.View Solution:
On January 1 2011 Fox acquired 70 of the shares

ANSWER
http://paperinstant.com/downloads/on-january-1-2011-fox-acquired-70-of-the-shares/

1/1
Powered by TCPDF (www.tcpdf.org)