BBFA2303

TAKE HOME EXAMINATION

MAY 2021 SEMESTER

BBFA2303
INTERMEDIATE FINANCIAL ACCOUNTING II

MATRICULATION NO :
IDENTITY CARD NO. :

1
 BBFA2303

PART B

QUESTION 1

Cost of business 600,000

combination

Fair value net assets:

Land and building 220,000
Plant and Machinery 110,000
Inventories 25,000
Trade Receivables 30,000
(385,000)
Goodwill 215,000

Adjustment to goodwill:
Fair Value Adjustment:
Land and Building (20,000)
(220,000-200,000)
Plant and Machinery (10,000)
(110,000-100,000)
Goodwill 185,000

QUESTION 2