Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Goodwill or capital reserve on acquisition Investment = 260000 Less 70 % of Share capital + Retained Earnings (100000+170000)*0.7 = 189000 Goodwill on acquisition =
Goodwill or capital reserve on acquisition | ||||||||||
Investment = 260000 | ||||||||||
Less 70 % of Share capital + Retained Earnings (100000+170000)*0.7 = 189000 | ||||||||||
Goodwill on acquisition = 260000-189000= 71000 | ||||||||||
Non Controlling Interest = 30%of 270000= 81000 less dividend paid i.e 30%of 10000 =81000-3000=78000 | ||||||||||
Particulars | Pepper | Salt | Consolidated | |||||||
Current Assets | 152000 | 115000 | 267000 | |||||||
Depreciable fixed assets | 400000 | 200000 | 600000 | |||||||
Accumulated depreciation | -130000 | -40000 | -170000 | |||||||
Goodwill | 71000 | |||||||||
investment in salt Company | 260000 | |||||||||
Current Liabilities | -80000 | -80000 | ||||||||
Common Stock | -300000 | -100000 | -300000 | |||||||
Retained Earnings | -255000 | -170000 | -255000 | |||||||
Non controlling interest* | -78000 | |||||||||
Sales | -200000 | -100000 | -300000 | |||||||
Expenses | 160000 | 85000 | 245000 | |||||||
Subsidiary Income | -7000 | |||||||||
Dividends Declared | 10000 | |||||||||
Total | 0 | 0 | 0 | |||||||
Consolidated Income statement | ||||||||||
Particulars | ||||||||||
Revenue - 200000+100000 | 300000 | |||||||||
Expenses - 160000+85000 | -245000 |
A. Do worksheet for Pepper and Salt. Excerse 6 |
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