Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Financial Accounting Expert

On 1 July 2009 ABC Ltd get 85% of the share capital of XYZ Ltd by issuing the 110,000 shares. The market price of ABC Ltd shares at the date it obtained control was $3.20 per share. The market price of XYZ Ltd shares at the date ABC Ltd received was $2.60. The date of acquisition equity of XYZ Ltd comprised of:

Share Capital          $150,000
General reserve       $22,000
Retained earnings    $50,000

All the identifiable assets and liabilities of XYZ Ltd were recorded at fair value apart from for the inventory with the carrying amount of $60,000 has the fair value of $180,000.

The inventory was sold outside the group for $250,000 on 30 June 2010.

The inventory of XYZ Ltd on 1 July 2010 comprised inventory purchased from ABC Ltd for $50,000. The original cost of the inventory was $35,000. The inventory was sold outside the group in November 2010.

On 15 March 2011 XYZ Ltd sold inventory to ABC Ltd for $40,000. The original cost of inventory was $33,000. 38 percent of the inventory had been sold outside the group by 30 June 2011.

On 1 January 2011 XYZ Ltd sold an item of plant to ABC Ltd for $22,000. The carrying amount at the time of sale was $36,000 (cost was $80,000). At the time of the sale the asset had a remaining useful life of 5 years.

ABC Ltd uses the proportionate interest goodwill method. The goodwill is not considered impaired.

On 1 July 2011 XYZ Ltd recorded $17,000 as a management fee expense in relation to services given by ABC Ltd. Included in the amount recorded as an expense $3,000 remains unpaid as at 30 June 2011.

The financial statements of XYZ Ltd for the year ended 30 June 2011 showed:

541_financial statements.jpg

Required:

1) Prepare an acquisition analysis,

2) Prepare all the consolidation adjustment entries needed to prepare the consolidated financial statements as at 30 June 2011. Give a brief heading for each adjustment that you made.

3) Compute the NCI share of profit for the year ended 30 June 2011

4) Compute the NCI share of shareholders’ equity for the year ended 30 June 2011

Financial Accounting, Accounting

  • Category:- Financial Accounting
  • Reference No.:- M91200

Have any Question? 


Related Questions in Financial Accounting

Assignment intermediate accounting for finance working

Assignment: Intermediate Accounting for Finance Working Capital Case Study Your job is to make ABC cash flow in years 2 and 3 (positive ending cash balances); which means you must balance ABC's cash conversion cycle days ...

1 write the journal entries for the following transactionsa

1) Write the journal entries for the following transactions: a) The company acquires $200 of inventory on accounts (does not pay cash) b) The company sells $125 of the $200 inventory purchased in transaction (a) above. T ...

1 describe the formal procedures associated with issuing

1. Describe the formal procedures associated with issuing long-term debt. 2. Describe the nature, type, and valuation of current liabilities. 3. Explain the accounting for different types of loss contingencies. 4. Explai ...

Budget assignmentyou have been asked to prepare the

Budget Assignment You have been asked to prepare the operating budget for a 150 room hotel, with a 50 seat Coffee Shop, a 100 seat Dining Room and a 25 seat Bar. The operating budget for the year is based on the followin ...

What are some different ways you could communicate a

What are some different ways you could communicate a concept for a new user interface for an automotive audio system? What are the strengths and weaknesses of each approach?

Assignmentnarrative and instructionsrockford corporation is

Assignment Narrative and Instructions Rockford Corporation is a wholesale plumbing supply distributor. The corporation was organized in 1981, under the laws of the State of Illinois, with an authorized capitalization of ...

1 in reviewing a claim under the equal pay act do the

1. In reviewing a claim under the Equal Pay Act, do the courts require that the jobs in question be identical? 2. Why do health professionals view marketing in a different way than their counterparts in other industries? ...

In fiscal 2010 dell inc acquired perot systems for 3878

In Fiscal 2010, Dell Inc. acquired Perot Systems for $3,878 million in cash. Perot's net assets acquired hand the following fair values at the acquisition date. In Million Fair Value cash and cash equivalents $266 Accoun ...

Assignmentq1 will the income statement include the profits

Assignment Q1 Will the income statement include the profits or losses from the purchase and sale of treasury stock? Yes or No? Include an example of a journal entry to purchase treasury stock. Q2 Explain the effect on Ca ...

Need at least 750 wordsprepare and submit a report about

Need at least 750 words Prepare and submit a report about any government process which has been re engineered using IT like E-gate in the airport. Discuss the strategies of change management that you think was applied to ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro