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Pat acquired 80% of the issued share capital of Slap on 30…  Pat acquired 80% of the issued share capital of Slap on 30 September 20X7. At the year end 31 December 20X7 the two companies have the following balance sheets: Pat Slap$’000 $’000 $’000 $’000Investment in Slap 4,000 – Other assets 10,500 6,00014,500 6,000Share capital 6,000 1,000Share premium – 500Retained earnings 1 Jan 20X7 4,000 1,500 Profit for 20X7 2,000 1,000 6,000 2,50012,000 4,000Liabilities 2,500 2,00014,500 6,000Required Calculate the goodwill at the date of acquisition.Image transcription textPop acquires 75% of the issued share capital of Snap on 1 January 20X8 when Snap had a retained earningsbalance of $1m. One year later the two companies have the following balance sheets. Pop Snap $’000 $’000Investment in Snap 5,000 Other assets 10,500 9,200 15,500 9,200 Share capital 10,000 4,000 R… Show more… Show moreOn 1 January 20X7, Pitch acquired 80% of Stadium for $200,000 when Stadium’s share capital and reserves were as follows: $’000Share capital 100Retained earnings 34134At acquisition, the fair value of some of Stadium’s assets were greater than their book value as follows: $’000 Inventories 9 (sold 1.3.20X7)Freehold land 12 Property, plant and equipment (5 year remaining useful life) 35 56 At 31 December 20X8 the balance sheets of Pitch and Stadium were as follows: Pitch Stadium$’000 $’000Cost of Stadium 200 Other assets 308 310508 310Share capital 150 100Retained earnings 307 162457 262Liabilities 51 48508 310RequiredPrepare the consolidated balance sheet of Pitch as at 31 December 20X8 Cumulative impairment losses amounting to $19,000 resulting from annual impairment tests are to be written off recognised goodwill on consolidation.  Pogo acquired the entire share capital of Stick for $8m on 1 February 20X0 when the balance sheets of the two companies were as follows: Pogo Stick$’000 $’000Investment in Stick 8,000 – – Other assets 9,500 6,50017,500 6,500Share capital 9,000 3,000Retained earnings 6,000 2,00015,000 5,000Liabilities 2,500 1,50017,500 6,500Required Prepare the consolidated balance sheet of the Pogo group as at 1 February 20X0.  Business Economics ECONOMY PL 12

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