AF5111 Accounting for Corporations 2017/2018 Semester i Assignment 2 The balance sheets of Karlux group of companies as at 31 December 2017 are shown below: Karlux Able Baron Property, plant and equipment 125,400 33.300 10,000 Investments 4,000 shares in Able 10,000 shares in Baron 36,150 13.500 Current assets Inventories Accounts receivable Bank 33,600 19,000 7.50o 26,400 10,000 12,500 13.000 15.000 10.000 234.550 90.800 40,000 Ordinary shares Retained profits 150,000 15.000 10,000 Balance at 31.12.2015 Profit for 2016 Profit for 2017 Proposed dividends 25500 24,000 8,000 3.500 16,000 12,000 6,000 20,000 6,0oo 10,000 8,000 Current liabilities Accounts payable .39.550 800-4000 234.550 90,800 40,000 Notes: 1. Karlux Ltd acquired 80 percent of Able Ltd on 31 December 2016. Able Ltd 2. Included in the plant assets of Baron Ltd are items bought from Able Ltd acquired 100 percent of Baron Ltd on 31 December 2015. for $800 on 1 January 2017. The net book value of these items at the time of the sale was $500 with an estimated useful life of four years. They are depreciated using the straight-line method. 3. The account receivables of Karlux Ltd and account payables of Baron Ltd 4. Karlux Ltd has not accounted for its share of post-acquisition dividend 5. The profit and loss of Karlux Ltd includes a pre-acquisition dividend of 6. The inventories of Baron Ltd include $1,000 in respect of goods invoiced include inter-company current accounts of $500. proposed by Able Ltd. S400 received from Able Ltd. to it from Able at cost plus 25 percent