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    On January 1 2012 B Langer Acquired A 30 Interest in PDF

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    hassan taimour
    Bélanger acquired a 30% interest in its supplier Chime on January 1, 2012 for $13,650. Bélanger's directors believe they can exert significant influence over Chime. Chime's identifiable assets and liabilities were recorded at fair value on the acquisition date, except for some depreciable assets which were $15,000 above carrying value. Additional information provided details on inventory purchases from Chime in 2012 and 2013, as well as Chime's income, equity, and dividend declarations for 2013.

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    On January 1 2012 B Langer Acquired A 30 Interest in PDF

    Uploaded by

    hassan taimour
    38 views1 page
    Bélanger acquired a 30% interest in its supplier Chime on January 1, 2012 for $13,650. Bélanger's directors believe they can exert significant influence over Chime. Chime's identifiable assets and liabilities were recorded at fair value on the acquisition date, except for some depreciable assets which were $15,000 above carrying value. Additional information provided details on inventory purchases from Chime in 2012 and 2013, as well as Chime's income, equity, and dividend declarations for 2013.

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    Bélanger acquired a 30% interest in its supplier Chime on January 1, 2012 for $13,650. Bélanger's directors believe they can exert significant influence over Chime. Chime's identifiable assets and liabilities were recorded at fair value on the acquisition date, except for some depreciable assets which were $15,000 above carrying value. Additional information provided details on inventory purchases from Chime in 2012 and 2013, as well as Chime's income, equity, and dividend declarations for 2013.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    38 views1 page

    On January 1 2012 B Langer Acquired A 30 Interest in PDF

    Uploaded by

    hassan taimour
    Bélanger acquired a 30% interest in its supplier Chime on January 1, 2012 for $13,650. Bélanger's directors believe they can exert significant influence over Chime. Chime's identifiable assets and liabilities were recorded at fair value on the acquisition date, except for some depreciable assets which were $15,000 above carrying value. Additional information provided details on inventory purchases from Chime in 2012 and 2013, as well as Chime's income, equity, and dividend declarations for 2013.

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    © All Rights Reserved
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    On January 1 2012 B langer acquired a 30 interest in #36

    On January 1, 2012, Bélanger acquired a 30% interest in one of its suppliers, Chime, at a cost
    of $13,650. The directors of Bélanger believe they exert significant influence over Chime. The
    equity of Chime at acquisition date was:Share capital (20,000 shares) ..... $20,000Retained
    earnings ......... 10,000$30,000All the identifiable assets and liabilities of Chime at January 1,
    2012, were recorded at fair values except for some depreciable non-current assets with a fair
    value of $15,000 greater than carrying amount. These depreciable assets are expected to have
    a further five-year life.Additional information:1. At December 31, 2013, Bélanger had inventory
    costing $100,000 on hand (2012 inventory on hand costing—$60,000) that had been purchased
    from Chime. A profit before tax of $30,000 (2012—$10,000) had been made on the sale.2.
    Assume a tax rate of 30% applies.3. Information about income and changes in equity of Chime
    as at December 31, 2013, is:4. Dividend revenue is recognized when declared by directors.5.
    The equity of Chime at December 31, 2013, was:Share capital ................. $ 20,000Cumulative
    other comprehensive income ..... 30,000Retained earnings ............... 130,000$180,000The
    cumulative other comprehensive income arose from a revaluation of land made at December
    31, 2013.Required(a) Assume Bélanger does not prepare consolidated financial statements.
    Prepare the journal entries in the books of Bélanger for the year ended December 31, 2013, in
    relation to the investment in Chime.(b) Assume Bélanger does prepare consolidated financial
    statements. Calculate the share of profit or loss from Chime on the consolidated comprehensive
    income statement for the year ending December 31, 2013, and the balance in the Investment
    account on the consolidated statement of financial position.View Solution:
    On January 1 2012 B langer acquired a 30 interest in

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