Mani Ltd owns all the shares in Hani Ltd. On 1 March 2021, Mani Ltd sold inventories that cost $50,000 to Hani Lid for $SE.000. At the end of the financial year, beingjune 24quarter of the inventories were sold by Hani Ltd to entities external to the group.In relation to this intragroup transaction, which of the following statement is correct?O Consolidated sales to be eliminated by $50,000O Consolidated sales to be added by $58,000O Consolidated profit to be oliminated by $6,000O Consolidated profit to be eliminated by $8,000

In consolidation of books, in case of intragroup transaction, Profit of unsold inventory is required…

Answered: 45pits Mani Ltd owns all the shares in…

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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H has a 75% owned subsidiary S. During the year ending 31 December 2021 H sold inventory to S for an invoice price of £800,000. S have since sold 75% of that inventory to third parties. The sale was at a mark-up of 25%on cost to H. S is the only subsidiary of H. What is the adjustment to inventory that would be included in the consolidated statement of financial position of H at the year-ending 31 December 2021 resulting from this sale? Show you calculations.
Kochin Corporation (KC) owns an 85% stake in Doha Corporation (DC). On 1 January 20XX, KC decided to sell its 50% interest in DC to a third party in exchange for € 600,000 in cash. On the disposal date, DC's fair value amounted to € 1,000,000. Furthermore, in KC's consolidated financial statements, the carrying amount of DC's net assets is € 1,000,000 and the carrying value of non-controlling interests in DC (including non-controlling interests' share of accumulated other comprehensive income) is € 100,000. As a result of this transaction, KC lost control of DC but retained 35% interest in the previous subsidiary, amounting to € 350,000 as of that date. Instructions: 1. Discuss and determine the accounting treatment for recording the transaction in accordance with IFRS 10 2.Calculate how much profit or loss from the transaction (if any) 3. Discuss and determine how the accounting treatment would have been different if it had been assumed that KC had not lost control after the…
Shohei Ltd owns 100% of Ohtani Ltd acquired on 1 July 2018 for $3 Million when the shareholders funds of Ohtani Ltd were: Share Capital 1,250,000 Retained Earnings 1,200,000 2,450,000 All assets of Ohtani Ltd were stated at fair value on the date of acquisition. (a) the directors believe that there has been an impairment loss on goodwill of $100,000 for the year ended 30 June 2021 (b) During the 2020-21 financial year Shohei Ltd sells inventory to Ohtani Ltd at a sales price of $800,000. The inventory cost Shohei Ltd $400,000 to produce. At 30 June 2021, 30% of the inventory is still on hand with Ohtani Ltd. The tax rate is 30% Record the consolidation entries for 30 June 2021
A.Selected information from the separate and consolidated income statements of CHARTER LTD. and as subsidiary, MEMBER INC. for the year ended December 31, 2021 are as follows: |CHARTER LTD. P600,000 Consolidated P924,000 693,000 MEMBER INC. Sales P420,000 330,000 P 90,000 COGS 450,000 | Gross profit P150,000 P231,000 During 2021, CHARTER LTD. sold goods to MEMBER INC. at the same mark-up on cost that CHARTER LTD. uses for all sales. At December 31, 2021, MEMBER INC. had not paid all of these goods and still held 37.5% of them in inventory. Compute for the original cost of goods in MEMBER INC.'s inventory acquired from Apple.
P Co paid $140,000 for 70% interest in S CO.on 1/1/2019, when S had Capital Stock of $50,000 and Retained Earnings of $100,000. Fair values of net assets were the same as recorded book values. During 2019, S had income of $20,000, declared dividends of $7,500, On 31/12/2019, the P CO financial statements will show income from subsidiary for 2019 Amount? Select one: a. 12,500 b. 5,250 c. 20, 000 d . 14, 000
.Miner Ltd acquired 75% of the share capital of Iver Ltd (Iver) for £1.2m three years ago, when Iver 's net assets were £1.4m. As at 31 August 2020, Iver has net assets of £1.75m.What figures would be included in the consolidated Statement of FinancialPosition as at 31 August 2020 for the Miner Group to reflect the ownership of Iver Ltd?a) Goodwill £200,000Non-controlling interest £1,312,500b) Goodwill £150,000Non-controlling interest £437,500c) Goodwill £150,000Non-controlling interest £1,312,500d) Goodwill £200,000Non-controlling interest £437,500 Show working
P Company acquired 70% of the ordinary shares of S Company at a time when SCompany’s book values and fair values were equal. Separate income of P and Sfor 2022 are as follows: P SSales 7,000,000 4,000,000 Cost of Sales 4,000,000 2,000,000 Dividend Revenue 490,000 0 Net Income 1,800,000 1,000,000 Intercompany sales from P to S for 2021 and 2022 are as follows: Cost Selling Price Sold as of year-end 2021 2,496,000 3,900,000 40% 2022 1,650,000 2,750,000 50% For the year 2022, compute for The consolidated Cost of Sales.

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