Menu
support@graduatecourseshelp.com
+1(805) 568 7317

the balance sheets of x ltd and y ltd on december 30 year 7 are as follows x ltd y l 737207

The balance sheets of X Ltd. and Y Ltd. on December 30, Year 7, are as follows:

X Ltd.

Y Ltd.

Fair value

Book value

Fair value

Book value

Fair value

$ 300

$ 300

$ 300

$1,000

$1,000

1,700

1,500

1,700

2,700

2,800

$1,800

$3,700

Current liabilities

$ 400

400

$ 900

900

Long term debt

300

300

800

800

Common shares—100 issued

400

Common shares—60 issued

600

Retained earnings

700

1,400

$1,800

$3,700

On December 31, Year 7, X issued 150 common shares for all 60 outstanding common shares of Y. The fair value of each of Y’s common shares was $40 on this date.

Required:

(a) Explain why this share issue most likely occurred.

(b) Prepare the consolidated balance sheet of X Ltd. on December 31, Year 7.

"Order a similar paper and get 15% discount on your first order with us
Use the following coupon
"GET15"

Order Now