Assigment Quesionon 01 July 2020,Sunshine Manufacturing Ll axquired all the issed shares of Go klcoast Ltd for S227000The equity of Goldoo ast at this date is as fokows:Share capitalRetained eamigs6500036000Al the identifiable assets and labilities of Goldoo ast Ltd were recorded at ampunts equal to fheir fair values at acquisition date except forCarying amountFair valueIn ventoryEquipment (the costis170001780035000)2200022500The equipment was considered to have a further usefl life:Of he inventoryThe folowing in formation was provided by the two comparies at 30 June 2021.5 years75% was sold by 30 June 2021Sunshine112000Goldco ast12500Profit before taxIncome taxexpenseProfit for the yearRetained eanings (01/07/2020)eamings (c30/08/2021)5800042006400083008000038000Reta14400038000044300Share capitalRetained eamingsGeneral reserve850001440004430010000Asset revaluation surpluslabilities185001285002200088100012900013130020000LandPant and EquipmentAccumulated depreciationinventoryInvestment in Goldco ast380000125800-11000055000227000-3300018700B81000131300In addition, there are some intra-group transactions between Sunshine and Goldcoast shown bebw:a. During the year, Sunshine sold in ventory costingheld on hand by Goldcoastb. on 1 Jannuary 2021, Goldcoast sold a planto Sunshine. The plant has carying amount ofThe remaining useful life is estimaed to be 5 years.Required3500 D Goldoost for4200. Atthe end of the year, 30%of the in ventoryis stil110,000 Tomson sod it o Sunshine for125,000Prepare the Aoquisition analysis and consolidated firancal statements of Sunshine Manuacturing Lt at 30 June 2021 using consolidation worksheetOFocus

A consolidated financial statement refers to that financial statement that reflects the overall…

Answered: Assignment Quesfon on 01 July 2020,…

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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H1. Account
X co, purchased 80% of Y Common stock at 1/1/2020 for $ 300,000 ,on the same date the y co stock was $ 100,000 and retained earning $120,000 , at acquisition date the net assets of y co. book value was equal to fair value except ( inventory FV more than BV of $26,000) and (land its FV more than BV10,000 ) (Building its FV more than BV by $ 14,000 ) but ( equipment its FV less than B V by $10,000) if Y CO. reported $160,000 net income for 31/12/2020 and paid $ 60,000 dividends . Other information 1- the y inventory completely sold during 2020 2- the building useful life was 7 years , but equipment 5 years 3- there is no impairment for goodwill during 2020 what is the amount of income from subsidiary reported in parents co income statement on 31/12/2020 Select one: a. 122,800 b. 102,000 c. 107,200 d. 128,000
B8.
X co, purchased 100% of Y Common stock at 1/1/2020 for $ 300,000 ,on the same date the y co stock was $ 100,000 and retained earning $120,000 , at acquisition date the net assets of y co. book value was equal to fair value except ( inventory FV more than BV of $26,000) and (land its FV more than BV10,000 ) (Building its FV more than BV by $ 14,000 ) but ( equipment its FV less than B V by $10,000) if Y CO. reported $160,000 net income for 31/12/2020 and paid $ 60,000 dividends . Other information 1- the y inventory completely sold during 2020 2- the building useful life was 7 years , but equipment 5 years 3- there is no impairment for goodwill during 2020 if Building balance in 31/12/2020 in parent co 50,000 & in subsidiary co 60,000 what is amount of Building in consolidated balance sheet in 31/12/2020 Select one: a. 122,000 b. 96,000 c. 110,000 d. 98,000
X co, purchased 75% of Y Common stock at 1/1/2020 for $ 300,000 ,on the same date the Y co stock was $ 100,000 and retained earning $120,000 , at acquisition date the net assets of Y co. book value was equal to fair value except ( inventory FV more than BV of $26,000) and (land its FV more than BV10,000 ) (Building its FV more than BV by $ 14,000 ) but ( equipment its FV less than B V by $10,000) if Y CO. reported $160,000 net income for 31/12/2020 and paid $ 60,000 dividends . Other information 1- the y inventory completely sold during 2020 2- the building useful life was 7 years , but equipment 5 years 3- there is no impairment for goodwill during 2020 What is the amount of NCI in net assets in 1/1/2020 Select one: a. 100,000 b. 55,000 c. 80,000 d. 75,000
Giant Ltd acquired 80 percent share capital of Expert Ltd. On 1 July 2018 for a cost of $1,600,000. Asat the date of acquisition, all assets and liabilities of Expert Ltd were fairly valued except land thathas a carrying value of $150,000 less than the fair value. The recorded balance of equity of Expert Ltd asat 1 July 2018 were as:Share capital $800,000Retained earnings $200,000General Reserve $400,000Total $1,400,000Additional information: The management of Giant Ltd values non-controlling interest at the proportionate share of ExpertLtd identifiable net assets. Expert Ltd has a profit after tax of $200,000 for the year ended 30 June 2019. During the financial year to 30 June 2019, Expert Ltd sold inventory to Giant Ltd for a price of$120,000. The inventory costs Expert Ltd $60,000 to produce. 25 percent of the inventory is stillon the hand of Giant Ltd as of 30 June 2019. During the year Expert Ltd paid $60,000 in consultancy fees to Giant Ltd. On 1 July 2018, Expert Ltd sold…
Equity Method Accounting, Second Year Palmetto Corporation acquired all of the voting stock of Steadman Company on January 2, 2021, by issuing stock with a fair value of $22,400,000. Steadman's book value was $7,000,000 at the date of acquisition, and its net assets were reported at amounts approximating fair value. However, Palmetto determined that Steadman had previously unreported identifiable intangibles with a fair value of $1,400,000 with a 4-year life. Steadman reported net income of $1,260,000 in 2021 and $1,750,000 in 2022 and declared and paid no dividends. There was no goodwill impairment in 2021, but impairment in 2022 was $560,000. Palmetto uses the compete equity method to report its investment in Steadman on its own books. Required a. Calculate equity in net income for 2022, reported on Palmetto's books. 0 b. Calculate the December 31, 2022, investment balance, reported on Palmetto's books 0
QUESTION On December 31, 2020, P Company purchased a controlling interest in S. Company for $1.060,000. The consolidated balance sheet on December 31, 2020 reported noncontrolling interest in S Company of $265,000. On the date of acquisition, the stockholders' equity section of S Company's balance sheet was as follows: Common stock Other contributed capital Retained earnings Total Noncontrolling Interest Percentage is: $520,000 $380,000 Required: 1. Compute the noncontrolling interest percentage on December 31, 2020. Otsek S $280,000 $1,180,000 2. Prepare the investment elimination entry made to prepare a consolidated balance sheet workpaper. Any difference between book value and the value implied by the purchase price relates to subsidiary PP&E. Debit Credit 7 points
Question 1 On January 2020, RITZ Ltd acquired 80% of the ordinary shares of AUGE Ltd. The group accountant has calculated that the goodwill arising on acquisition was GH₵8,000,000. However, the financial controller has uncovered a number of errors and requires advice about how to resolve them. No entries have been posted in respect of contingent cash consideration that work be paid in 2025 if AUGE meets targets. The contingent consideration had a fair value of GH₵800,000 at acquisition and was calculated using a discount rate of 10% No fair value adjustment has been recorded in respect of AUGE’s non-depreciable land. This land had a carry amount of GH400,000 at acquisition and a fair value of GH₵600,000. AUGE’s brand is internally generated and has not been recognized in the consolidated financial statement. At acquisition it had a fair value of GH₵1,000,000 and a remaining estimated useful life of 5 years. Acquisition cost of GH₵100,000 incurred towards the acquisition process has…
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Topic: Intercompany Sale of Inventory
On 1/1/2019, Company P acquired 90% of S company and uses the cost method, the Implied value (IV) is 220000 JD. On date of acquisition, RE balance for S company is 60000 JD. RE balance for S company on 1/1/2020 is 80000 JD. RE balance for S company on 1/1/2021 is 90000 JD. Compute NCI balance on 1/1/2021. Select one: a. 23000 b. 25000 c. 27000 d. 29000

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