FE holds investments in a number of subsidiaries and associate entities and madeone change to its holdings in 2021, which was the acquisition of LT. The statement offinancial position of the FE group as at 31 December 2021 and its comparative areshown below:2020Statement of financial position as at 31 December 2021ASSETSNon-current assetsProperty, plant and equipmentGoodwillInvestment in associatesR000R00024 0006 3005 20035 50042 50078 00020 2005 8004 70030 70031 70062 400Current assetsTotal assetsEQUITY AND LIABILITIESEquity attributable to owners of the parentShare capital (R1 ordinary shares)Share premiumRevaluation reserveRetained earnings15 00018 0001 0002 00012 50033 5009 2007 60022 600Non-controlling interestsTotal equity8 80031 40042 700 Non-current liabilitiesLong-term borrowingsCurrent liabilitiesTotal liabilities16 00019 30035 30018 00013 00031 000Total equity and liabilities78 00062 400Additional information:1. FE acquired 70% of the ordinary shares of LT on 1 July 2021 for a cashconsideration of R400 000 plus the issue of 1 million R1 ordinary shares in FE.On 1 July 2021 the fair value of an FE share was R1.50. On 1 July 2021 thefair values of the net assets of FE were as follows:R000Property, plant and EquipmentInventories1 000800Receivables900Cash and cash equivalents150Payables(850)2 000FE measured the non-controlling interests in LT at its proportionate share of the fairvalue of the net assets of LT at the acquisition date.1. The total comprehensive income attributable to non-controlling interests for theyear ended 31 December 2021 was R200 000.2. There were no disposals of property, plant and equipment in the year.Depreciation charged in the year ended 31 December 2021 was R1 500 000.3. FE's share of associates' profit after tax for the year ended 31 December 2021was R900 000.4. FE paid a dividend in the year of R1 million.Required:Prepare the following extracts from the consolidated statement of cash flows for theFE group for the year ended 31 December 2021, in accordance with IAS 7 Statementof Cash Flows:Cash flows from investing activities; andCash flows from financing activitiesii)

Cash flow statements include: Cash flow from operating activities Cash flow from Investing…

FE holds investments in a number of subsidiaries and associate entities and made one change to its holdings in 2021, which was the acquisition of LT. The statement of financial position of the FE group as at 31 December 2021 and its comparative are shown below: Statement of financial position as at 31 December 2021 ASSETS Non-current assets 2020 R000 R000 20 200 5 800 4 700 Property, plant and equipment Goodwill Investment in associates 24 000 6 300 5 200 35 500 42 500 78 000 30 700 31 700 Current assets Total assets 62 400 EQUITY AND LIABILITIES Equity attributable to owners of the parent Share capital (R1 ordinary shares) Share premium Revaluation reserve Retained earnings 15 000 18 000 1 000 2 000 12 500 33 500 9 200 42 700 7 600 22 600 Non-controlling interests Total equity 8 800 31 400

FE holds investments in a number of subsidiaries and associate entities and made one change to its holdings in 2021, which was the acquisition of LT. The statement of financial position of the FE group as at 31 December 2021 and its comparative are shown below: Statement of financial position as at 31 December 2021 ASSETS Non-current assets 2020 R000 R000 20 200 5 800 4 700 Property, plant and equipment Goodwill Investment in associates 24 000 6 300 5 200 35 500 42 500 78 000 30 700 31 700 Current assets Total assets 62 400 EQUITY AND LIABILITIES Equity attributable to owners of the parent Share capital (R1 ordinary shares) Share premium Revaluation reserve Retained earnings 15 000 18 000 1 000 2 000 12 500 33 500 9 200 42 700 7 600 22 600 Non-controlling interests Total equity 8 800 31 400

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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The parent company invested in walleye company when it consists Ordinary share 480,000 and Retained Earnings 200000 at 1/1/2019, on that date the excess of cost over book value is due to a $70,000 undervaluation of inventory, a $150,000 overvaluation of building and 100,000 undervaluation’s of equipment. The non-controlling of interest in the date of acquisitions was$160000 and goodwill 100000. During the first-year operation (2019) the subsidiary net income was 180000 and paid dividend 75,000- and second-year (2020) income was240,000 and 100000 dividends, all noncurrent assets have 10years useful life, answer the following questions: 1) The amount Cost of Parents’s purchase of Subsidiary on January 1, 2019 is: 2) The investment account in 31/12/2020 is: 3) The non-controlling interest in 31/12/2019 is: 4) The consolidate income in 31/12/2019 is: 5) The unamortized value in 31/12/2020 is:
What is the Goodwill (Gain on Bargain Purchase) ?
1. At what amount will the gain on sale of building appear on the consolidated/group income statement of Power and Speed for the year 2019 should be: 2. The consolidated depreciation expense for 2019 should be
FE holds investments in a number of subsidiaries and associate entities and made one change to its holdings in 2021, which was the acquisition of LT. The statement of financial position of the FE group as at 31 December 2021 and its comparative are shown below:Statement of financial position as at 31 December 2021 2020ASSETS R000 R000Non-current assetsProperty, plant and equipment 24 000 20 200Goodwill 6 300 5 800Investment in associates 5 200 4 70035 500 30 700Current assets 42 500 31 700Total assets 78 000 62 400EQUITY AND LIABILITIESEquity attributable to owners of the parentShare capital (R1 ordinary shares) 18 000 15 000Share premium 1 000 -Revaluation reserve 2 000 -Retained earnings 12 500 7 60033 500 22 600Non-controlling interests 9 200 8 800Total equity 42 700 31 4006Non-current liabilitiesLong-term borrowings 16 000 18 000Current liabilities 19 300 13 000Total liabilities 35 300 31 000Total equity and liabilities 78 000 62 400Additional information:1. FE acquired 70% of the…
Questions: a. How much is the Goodwill/Gain on Bargain Purchase? b. How much is the Consolidated Assets? c.
CASE 1 Presented below are the financial balances for the BonGiovi Company and the Terens Company as of December 31, 2017, immediately before BonGiovi acquired Terens. Also included are the fair values for Terens Company's net assets at that date (thousands of US$). Terens Compute consolidated retained earnings as a result of this acquisition. A) $1,160. Compute consolidated revenues immediately following the acquisition. BonGiovi Book Value Terens Book Value B) $1,170. 31.12.2017 31.12.2017 Fair Value 31.12.2017 C) $1,265. Cash 870 240 240 Receivables 660 600 600 D) $1,280. Inventory 1,230 420 580 Land 1,800 260 250 E) $1,650. Buildings (Net) 1,800 540 650 Equipment (net) 660 380 400 Accounts Payable (570) (240) (240) Accrued expenses (270) (60) Long term Liabilities (2,700) (1,020) (60) (1,120) Common Stock (1,980) A) $3,540. ($20par) B) $2,880. Common Stock ($5 (420) par) C) $1,170. Additional paid in (210) (180) capital D) $1,650. Retained earnings (1,170) (480) Revenue (2,880)…