On 1 April 20X7 Root acquired 116 million of Branch’s 145 million ordinary shares for an immediate cash payment of $210 million and issued at

On 1 April 20X7 Root acquired 116 million of Branch’s 145 million ordinary shares for an immediate cash payment of $210 million and issued at par one 10% $100 loan note for every 200 shares acquired. At the date of acquisition Branch owned a recently built property that was carried at its depreciated construction cost of $62 million. The fair value of this property at the date of acquisition was $82 million and it had an estimated remaining life of 20 years. Branch also had an internally-developed brand which was valued at the acquisition date at $25 million with a remaining life of 10 years. The inventory of Branch at 31 March 20X9 includes goods supplied by Root for a sale price of $56 million. Root adds a mark-up of 40% on cost to all sales. What is the amount of the unrealised profit arising from intragroup trading?

Need your ASSIGNMENT done? Use our paper writing service to score better and meet your deadline.


Click Here to Make an Order Click Here to Hire a Writer