Answer Happy

4 out of 5 por Below is information related to Trans-Atlantic company for end of year 2021. Unearned revenue- 50,000 Building-350,000 Retained earnings-70,000 Inventories 55,000 Share Capital-484,000 Account receivable-60,000 Accounts Payable-80,000 Cash at bank-105,000 Property, plant and equipment-200,000 Share premium-50,000 Additional information: Provision for bad debt as at the time of sale is 10% Depreciation on building -5% Depreciation on property plant and equipment 5% The shareholders have decided to sell the company this year end due to circumstances beyond their control. A rich business man, indicated interest in buying the company. During negotiation, it was discovered that the fair value of some of the assets are as follows: Property, Plant and Equipment-180,000 Building-450,000 Other assets retained their book value The company has a good prospect so the buyer agreed to pay extra 15% on the price of the company. Cash at bank-105,000 Property, plant and equipment=200,000 Share premium-50,000 Additional information: Provision for bad debt as at the time of sale is 10% Depreciation on building -5% Depreciation on property plant and equipment-5% The shareholders have decided to sell the company this year end due to circumstances beyond their control. A rich business man, indicated interest in buying the company. During negotiation, it was discovered that the fair value of some of the assets are as follows: Property, Plant and Equipment=180,000 Building=450,000 Other assets retained their book value The company has a good prospect so the buyer agreed to pay extra 15% on the price of the company. Required: A. Construct the company's statement of financial position as at 31st December, 2021 (1 mark) B. Calculate the purchase price and goodwill if any (2 marks) C. Construct a new statement of financial position after the buyer took over the company. (2 marks)