Answered step by step
Verified Expert Solution
Question
1 Approved Answer
G Ltd purchased 71% H Ltd shares and formed the GH group. An extract from a consolidation worksheet three years later is below. G H
G Ltd purchased 71% H Ltd shares and formed the GH group. An extract from a consolidation worksheet three years later is below. G H Sum Eliminations Group Allocation NCI Parent Dr Cr Sales 94 000 82 000 176 000 19 000 3 157 000 57 000 36 000 93 000 930 4/3 19 000 74 930 Cogs Gross profit 37 000 46 000 83 000 82 070 Other revenues 17 000 6 000 23 000 3 220 5 9 750 7 10 030 Other expenses (22 000) (34000) (56 000) 750 2/5 3 220 (53 530) Net profit 32 000 18 000 50 000 38 570 ??? ??? Other information: o Sales from G to H during current year were $1,711 and the mark-up was $930. o Interest on an intercompany bill was $3,220. o Intercompany dividend was $9,750. o Goodwill impairment (partial method) for the year was $750. Required: from the choices shown, what is the correct depiction of the NCI/Parent columns ??? for Net profit: G Ltd purchased 71% H Ltd shares and formed the GH group. An extract from a consolidation worksheet three years later is below. G H Sum Eliminations Group Allocation NCI Parent Dr Cr Sales 94 000 82 000 176 000 19 000 3 157 000 57 000 36 000 93 000 930 4/3 19 000 74 930 Cogs Gross profit 37 000 46 000 83 000 82 070 Other revenues 17 000 6 000 23 000 3 220 5 9 750 7 10 030 Other expenses (22 000) (34000) (56 000) 750 2/5 3 220 (53 530) Net profit 32 000 18 000 50 000 38 570 ??? ??? Other information: o Sales from G to H during current year were $1,711 and the mark-up was $930. o Interest on an intercompany bill was $3,220. o Intercompany dividend was $9,750. o Goodwill impairment (partial method) for the year was $750. Required: from the choices shown, what is the correct depiction of the NCI/Parent columns ??? for Net profit
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