Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Assignment Consolidation (answer the questions in Exia) PMAB acquires 100 percent of the shares in the subsidiary DB in March 31, 20x2. The purchase price
Assignment Consolidation (answer the questions in Exia)
PMAB acquires 100 percent of the shares in the subsidiary DB in March 31, 20x2. The purchase price is 320. The book value of equity at the purchase date in DB is 184. Of the difference between the equity and the purchase price, 80 before tax are referred to customer lists and amortized over 5 years.
DB has sold products to PMAB at a selling price of 40 in December, year x2. At the end of the year all products are still included in the inventory for PMAB. The profit margin on the sale from DB was 25 percent.
Complete the consolidated balance sheet and the consolidated income statement for 20x2. The tax rate is 20 percent.
31/12 20x2 PMAB DNBote Column 1 Column 2 Column 3 Column 4 CBS
Goodwill
-
-A 72,0
72,0
Other intangibles
-
-A 80,0
-16,0
64,0
Real estate
-
112,0
112,0
Inventory
40,0
308,0
-10,0
338,0
Shares in DB
320,0
-B -320,0
0,0
Cash
-
40,0
40,0
Total assets
360,0
460,0
-168,0
-16,0
-10,0
626,0
Share capital*
320,0
120,0C -120,0
320,0
Other equity
-
104,0D -32,0
-12,8
-8,0
51,2
Deferred tax
-
36,0
-16,0
-3,2
-2,0
14,8
Debt
40,0
200,0
240,0
Total debt/EQ
360,0
460,0
-168,0
-16,0
-10,0
626,0
* 80 mn shares
20x2
PMAB
DB
Column 5
Column 6
Column 7
Column 8
CIS
Sales
-
422,0
-105,5
-40,0
276,5
Operating costs
-
-320,0
80,0
40,0
-6,0
-206,0
Deprec/amortisation
-
-24,0E 6,0
-16,0
-34,0
EBIT
78,0
-19,5
-16,0
0,0
-6,0
36,5
Financial net
-
-14,0
3,5
-10,5
EBT
-
64,0
-16,0
-16,0
0,0
-6,0
26,0
Deferred tax
-
-12,0
3,0
3,2
2,0
-3,8
Taxes paid
-
-12,0
3,0
-9,0
Net income
40,0
-10,0
-12,8
0,0
-4,0
13,2
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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