02) On 30 June 2010 Parent owns 80% of the share capital of Subsidiary. The non-controlling interest had a fair valueof $1,300,000. Extract from the statements of financial position of Subsidiary at 30 June 2014 are shown below:Statement of financial position:Ordinary shareShare premiumRetained earningsSelect one:O a. $1,220,000O b. $1,300,000O c. $1,480,000O d. $1,400,00030 June 2010$1,000,000400,0004,700,000Select one:O a. $225,000O b. $228,800O c.$223,400O d. $255,300What figure for non-controlling appear in the consolidated statement of financial position as at 30 June 20X611) On January 1, 2012 Peter Inc. acquired 80% of theoutstanding common stock of Sam Co. for $540,000.Sam's net assets had a book value $600,000 on that datealthough equipment with a ten-year life having a bookvalue of $10,000 had a fair market value of $30,000. Anyremaining allocation is to go to goodwill. On December31, 2012, Sam reports revenues of $125,000 andexpenses of $50,000 while Peter reports operatingrevenue of $400,000 and expenses of $250,000. What isthe consolidated net income for 2012?30 June 2014$1,000,000400,0005,600,000

Explanation:- At the time of acquisition = $1,300,000 % Post acquisition = (5,600,000– 4,700,000) x…

02) On 30 June 2010 Parent owns 80% of the share capital of Subsidiary. The non-controlling interest had a fair value of $1,300,000. Extract from the statements of financial position of Subsidiary at 30 June 2014 are shown below: Statement of financial position: Ordinary share Share premium Retained earnings 30 June 2010 $ 1,000,000 400,000 4,700,000 Select one: O a. $1,220,000 O b. $1,300,000 O c. $1,480,000 O d. $1,400,000 30 June 2014 $ 1,000,000 400,000 5,600,000 What figure for non-controlling appear in the consolidated statement of financial position as at 30 June 20X6

02) On 30 June 2010 Parent owns 80% of the share capital of Subsidiary. The non-controlling interest had a fair value of $1,300,000. Extract from the statements of financial position of Subsidiary at 30 June 2014 are shown below: Statement of financial position: Ordinary share Share premium Retained earnings 30 June 2010 $ 1,000,000 400,000 4,700,000 Select one: O a. $1,220,000 O b. $1,300,000 O c. $1,480,000 O d. $1,400,000 30 June 2014 $ 1,000,000 400,000 5,600,000 What figure for non-controlling appear in the consolidated statement of financial position as at 30 June 20X6

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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