M. Apulition method and non-controlling interests al fair value p Co ined control of Jasper Co through acquisition or in the voting rights of fuper Co an luly 2012. A can transfer of $2.000.000 was made to the former owner of Jasper Cap Coelecta to measure no controlling interests at fair value on acquisition date. The fair value of non controlling interests on i Ivativen 2011 is Share capital. Retained earnings Revaluation reserves 5 S00.000 450.000 100.000 51.050,000 The air and hook values of identifiable et assets of Jasper Co at acquisition date is shown bele Book value Fair value Remarks Inventory 5 200.000 5 250.000 60 were sold during 203 Fixed asset *50 000 500,000 Remaining useful life at acouition was 5 years S232 Other net iet 400.000 400.000 51 050 000 51,150,000 1000o y ev different The financial statements of P Co and Jasper Co are shown below: Statement of Comprehensive Income For Year Ended 31 December 203 P Co 54.000.000 IADO,000) Jasper CO $1,000,000 (200,000) 5 800,000 100,000 Profit before tax.**** Tax Procter tax- Change in revaluation reserves, after tax..................... Comprehensive income $3,200.000 53.200.000 $ 900.000 Jasper Co Statement of Changes in Equity For the Year Ended 31 December 20x3 (partial) PCa Jasper Co Retained Retained earnings earnings Balance Hanuary 20x3........ $ 340,000 $ 400.000 Comprehensive income .............. 3,200,000 800,000 Dividends declared.......... (180.000) [100,000) Balance 31 December 20x3...... 53,860.000 51.100.000 Jasper Co Revaluation reserves $400.000 100,000 IRE in se Total $ 800,000 900,000 1100,000) 13% NO 5500,000 $1,500,000 Statement of Financial Position As at 31 December 20x3 Jasper Co $2,200,000 P Co 52,400,000 2.000.000 220.000 Fixed assets, net book value. Investment in Jasper Co. Inventory ... Intercompany receivable Accounts receivable. Dividend receivable from Jasper Cash 500,000 300,000 550.000 800,000 72.000 60.000 20,000 $3,570,000 $6,052,000 51 390,000 Puyables........... Intercompany payable Dividend payable Share capital Retained earnings Revaluation reserves $ 712.000 300,000 180,000 1,000,000 3,860.000 80,000 500,000 1.100.000 500,000 $3.570,000 TVT 56,052.000 Required 1. Prepare the consolidation adjusting entries for the year ended 31 December 20x3. Tax rate was 20 Recognize tax effects on fair value differentials 2. Perform an analytical check of the balance of non-controlling interests as at 31 December 2013