Assume Large Corporation Invested $ 600,000 for Small Corporation and the estimated Fair Market Values of Assets, Liabilities and Equity Accounts are as follows:
|Assets||Amount $||Liabilities||Amount $|
LT Marketable Securities
PP & E
Required: (2+3 Marks)
Determine the Amount of Goodwill or Bargain Purchase.
What is the Journal Entry in the book of Large Corporation?
From the following Table pass Basic Elimination Entry under Equity Method in the book of Parent Company: (5 Marks)
Paid in Capital
|Beginning Book Value
+ Net Income
Consolidated financial statements present the financial position and results of operations for controlling entity and one or more controlled entities. ‘Consolidated Financial Statement has some advantages but at the same time it is not free from limitations.’ Elaborate this statement. (5 Marks)