Calculate the fair value of each of these assets

Assignment Help Accounting Basics

Reference no: EM132691098

Problem - Below is the consolidated statement of financial position for Blue at December 31, Year 2.

BLUE LTD. CONSOLIDATED STATEMENT OF FINANCIAL POSITION December 31. Year 2

Plant and equipment $1,072,000

Accumulated amortization (204,000)

Goodwill 183,000

Inventory 353,000

Accounts receivable 121,000

Cash 29,000

Total $1,554,000

Ordinary shares $426,000

Retained earnings 260,000

Non-controlling interest 114,000

Long-term debt 498,000

Current liabilities 256,000

Total $1,554,000

Required -

(a) From the information above, determine the percentage of Joy's ordinary shares purchased by Blue on December 31, Year 2.

(b) Which of Joy's assets or liabilities had fair values that were not equal to their carrying amounts at acquisition? Calculate the fair value of each of these assets at December 31, Year 2.

Reference no: EM132691098

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