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Liu Company purchased all the outstanding ordinary shares of Yang Plastics Ltd One December 31, 2011. Just before the purchase the condensed statement of financial position of the two companies

Liu Company purchased all the outstanding ordinary shares of Yang Plastics, Ltd. One December 31, 2011. Just before the purchase, the condensed statement of financial position of the two companies appeared as follows.  Liu used current assets of Y1,225,000 to acquire the shares of Yang Plastics. The excess of this purchase price over the book value of Yang Plastics’ net assets is determined to be attributable Y86,000 to Yang Plastics’ plant and equipment and the remainder to goodwill. Instructions (a) Prepare the entry for Liu’s acquisition of Yang Plastics, Ltd, shares. (b) Prepare a consolidated worksheet at December 31, 2011. (c) Prepare a consolidated statement of financial position at December 31,2011.

Apr 24 2020 View more View Less

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