P Ltd acquired 80% of S Ltd and 30% of A Ltd in June 20x7. For the year ended 31 December 20x8, S Ltd reported "Profit after tax $100 million" and A Ltd reported "Profit after tax $50 million". There were no purchase price allocation issues and no intragroup transactions. The 20x8 consolidation adjusting entries for the profit after tax should be: S Ltd: Dr Non-controlling interest (CPL) $20 million, Cr Non-controlling interest (CBS) $20 million A Ltd: Dr Cash $15 million, Cr Dividend income $15 million S Ltd: Dr Non-controlling interest (CPL) $20 million, Cr Non-controlling interest (CBS) $20 million A Ltd: Dr Investment in associate $15 million, Cr Share of associate's profit $15 million None of the listed choices. S Ltd: Dr Cash $80 million, Cr Dividend income $80 million A Ltd: Dr Cash $15 million, Cr Dividend income $15 million S Ltd: Dr Cash $80 million, Cr Dividend income $80 million A Ltd: Dr Investment in associate $15 million, Cr Share of associate's profit $15 million

P Ltd acquired 80% of S Ltd and 30% of A Ltd in June 20x7. For the year ended 31 December 20x8, S Ltd reported "Profit after tax $100 million" and A Ltd reported "Profit after tax $50 million". There were no purchase price allocation issues and no intragroup transactions. The 20x8 consolidation adjusting entries for the profit after tax should be: S Ltd: Dr Non-controlling interest (CPL) $20 million, Cr Non-controlling interest (CBS) $20 million A Ltd: Dr Cash $15 million, Cr Dividend income $15 million S Ltd: Dr Non-controlling interest (CPL) $20 million, Cr Non-controlling interest (CBS) $20 million A Ltd: Dr Investment in associate $15 million, Cr Share of associate's profit $15 million None of the listed choices. S Ltd: Dr Cash $80 million, Cr Dividend income $80 million A Ltd: Dr Cash $15 million, Cr Dividend income $15 million S Ltd: Dr Cash $80 million, Cr Dividend income $80 million A Ltd: Dr Investment in associate $15 million, Cr Share of associate's profit $15 million

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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