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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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
O 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
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