Question
Need answer as soon as possible. I will surely upvote. X ltd owns 75% of Y Ltd. Y Ltd owns 40% of Z ltd. X
Need answer as soon as possible. I will surely upvote.
X ltd owns 75% of Y Ltd. Y Ltd owns 40% of Z ltd. X Ltd also owns 30% of Z Ltd. The ownership interests in Z ltd were acquired when Z ltd was incorporated.
The retained earnings of the three companies at 1 July 2016 and 30 June 2017 are as follows:
| X Ltd $ | Y Ltd $ | Z Ltd $ |
Retained earnings at acquisition date | 40 000 | 12 000 | 8 000 |
Retained earnings 1 July 2016 | 50 000 | 15 000 | 10 000 |
Retained earnings 30 June 2017 | 60 000 | 20 000 | 16 000 |
The dividends paid/declared by group entities for the year ended 30 June 2017 were as follows:
| X Ltd $ | Y Ltd $ | Z Ltd $ |
Interim dividend paid | 3,000 | 600 | 500 |
Final dividend declared | 3,000 | 1,000 | 1000 |
Additional Information:
- During the year ended 30 June 2016, Z sold goods to Y Ltd for $200,000. These goods cost Guitar Ltd $180,000. 10% of these goods remained in Ys inventory at 30 June 2016.
- During the year ended 30 June 2016, X sold goods to Z Ltd for $300,000. These goods cost Guitar Ltd $20,000. 25% of these goods remained in Zs inventory at 30 June 2016.
- During the year ended 30 June 2017, Z Ltd sold goods to X for $12,000. These goods cost Z Ltd $10,000. 50% of these goods remained in Horn Ltds inventory at 30 June 2017.
- During the year ended 30 June 2017, Z sold goods to Y Ltd for $200,000. These goods cost Z Ltd $180,000. 15% of these goods remained in Y Ltds inventory at 30 June 2017.
- All entities in the group use the perpetual inventory system.
- The corporate tax rate is 30%.
Required:
On the basis of the information provided, calculate the total non-controlling interest in consolidated profit after tax and total non-controlling interest in consolidated retained earnings for year ended 31 December 2017. Show all workings.
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