Maui Ltd. has the following SFP at December 31, 20X5.

On January 1, 20X6, Oahu Ltd., whose assets are composed entirely of share investments and cash, paid $371,000 for 70% of the outstanding shares of Maui Ltd. The current fair values of the net assets of Maui Ltd. on January 1, 20X6, were:

Oahu Ltd. had the following shareholders€™ equity on January 1, 20X6:

Common shares....................................$ 960,000
Retained earnings.................................1,420,000
...............................................................$2,380,000

Required

1. Assume that a consolidated SFP is prepared on January 1, 20X6. Calculate the dollar amounts for the following items as they would appear on that consolidated SFP under the entity method:

i. goodwill;

ii. land;

iii. equipment;

iv. common shares;

v. retained earnings; and

vi. NCI.

2. What does NCI represent on the consolidated SFP?

Transcribed Image Text:

Maui Ltd. Statement of Financial Position December 31, 20X5 $170,000 Current assets Capital assets: $ 60,000 Land Building, net 240,000 100,000 Equipment, net 400,000 Goodwill 100,000 $670,000 Current liabilities $130,000 Bonds payable, 18-year duration, due 2X23 140,000 Common shares 240,000 Retained earnings, January 1, 20X5 280,000 Net loss for 20X5 (120,000) $670,000 Current assets Land $170,000 150,000 Current liabilities Bonds payable $130,000 140,000 Building (net) Equipment (net) 360,000 60,000