Question
Big Ltd purchased 90% of the shares in Medium Ltd on 1 July 2015 for $600,000. Medium Ltd owners equity at the date of acquisition
Big Ltd purchased 90% of the shares in Medium Ltd on 1 July 2015 for $600,000. Medium Ltd owners equity at the date of acquisition comprised the following:
| Share capital | $450,000 |
| Reserves | $100,000 |
| Retained profits | $ 75,000 |
On 1 August 2015, Medium Ltd acquired 70% of the shares of Small Ltd for $380,000. Small Ltd owners equity at that date comprised the following:
| Share capital | $200,000 |
| Retained profits | $180,000 |
An additional $3,000 goodwill impairment has been recognised on the second investment of Medium Ltd in Small Ltd during the period of 2015 - 2016. (Note, assuming partial goodwill method is used, then the impairment will only impact the immediate parent (which is MEDIUM Ltd)s share of profit).
BIG-----90%-----MEDIUM-----70%-----SMALL
a)Prepare the elimination journal entries required for the consolidation as at 30 June 2016.
b)Calculate the non-controlling interests in the group.
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
Trade Based Money Laundering
Authors: John A. Cassara
1st Edition
1119078954, 9781119078951
