Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
Answer this question as soon as possible with proper calculations Qari Itd acquired an 70% holding in Hamza Ltd on 1 January 2020. Qari Itd
Answer this question as soon as possible with proper calculations
Qari Itd acquired an 70% holding in Hamza Ltd on 1 January 2020. Qari Itd is a multinational and presents its financial statements in Dollars. At this date Hamza Lid retained earnings stood at $11,000.On this date, the fair value of the 30% non-controlling shareholding in Hamza Ltd was $8.000. During the year, Hamza Itd earned a profit of 20000 S. The statements of financial position of Qari Itd and Hamza Itd as at 31 December 2020 are as follows: s $ 85,000 24,000 Noncurrent assets: Property, plant & equipment Investments: Shares in Hamza Itd 60,000 145,000 Current assets: Inventory Receivables 60,000 100,000 24,000 60,000 305.000 108,000 Equity: Ordinary $1 shares Share premium Retained earnings 65.000 35,000 70,000 20,000 10,000 2 Current liabilities 170,000 135,000 2 47,000 305,000 2 At acquisition the fair value of Hamza Itd plant exceeded its book value by $9,000. Furthermore Qari Ltd sold goods to Hamza Itd costing 10000$ on credit (which was still not settled till end of year) by earning a profit margin of 20% while 1/3 of inventory is still unsold. Required: Calculate and Draft the followings: 1. Net assets of subsidiary 2. Goodwill 3. Non-controlling Interest 4. Group retained earnings 5. Adjustment for Unrealized Profits 6. Consolidated statement of Financial Position as on 31 December 2020 (2Marks) (2Marks) (1 Marks) (1Marks) (1 Marks) (3Marks) *******Good LuckStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started