Question
Hello, can you please provide me ans for these question? 1) Waratah Ltd acquired a 60% ownership interest in Bottle Brush Ltd on 30 June
Hello, can you please provide me ans for these question?
1) Waratah Ltd acquired a 60% ownership interest in Bottle Brush Ltd on 30 June 20X5.On the same day, Bottle Brush Ltd acquired a 70% ownership interest in Honeydew Ltd.
The following interentity transactions have taken place between the entities in the group during the years ended 30 June 20X6 and 30 June 20X7.
On 1 July 20X5 Bottle Brush sold an item of plant to Honeydew for a profit of $20 000.The remaining useful life of the plant at the date of transfer was 4 years.
On 1 September 20X5, Honeydew paid a dividend of $70 000 from profits earned since 30 June 20X5.
Waratah lent $50 000 to Bottle Brush on 1 January 20X6.Interest charged on the loan for the year ended 30 June 20X6 was $2000 and for the year ended 30 June 20X7 was $4000.
On 31 May 20X6 Waratah sold inventory to Honeydew for $15 000.Profit earned on the sale was $5000.Honeydew sold the inventory to external parties on 1 August 20X6.
Details of profits earned by entities within the group for the years ended 30 June 20X6 and 30 June 20X7 are:
30 June 20X6
30 June 20X7
Waratah
100 000
125 000
Bottle Brush
85 000
70 000
Honeydew
20 000
35 000
The tax rate is 30%.
The NCI share of profit in Bottle Brush for the year ended 30 June 20X6 is:
2) The pre-acquisition entry for the Baxter group in order to consolidate a 60% interest in a subsidiary contained the following debits.Retained earnings $6000, share capital $12 000, general reserve $2400, BCVR $1200.The direct non-controlling interests share of the subsidiarys equity at the date of acquisition is:
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