Answered step by step
Verified Expert Solution
Question
1 Approved Answer
P Co decreases ownership interest in S Co from 95% to 90% on 1 January 202. The following information pertains to SCo : Additional information:
P Co decreases ownership interest in S Co from 95% to 90% on 1 January 202. The following information pertains to SCo : Additional information: 1. Intangible asset remains unimpaired at current date. 2. Retained earnings of S Co as at 31 December 201 is $1,960,000. Current income after tax for the year ended 31 December 202 is $710,000. Required (a) Determine the amounts of the following items as at 31 December 202 : 1. New goodwill 2. Effects that are taken to the Income Statement i. Re-measurement gain or loss ii. Profit or loss on sale of investment 3. Equity effects that are not taken to the Income Statement i. Profit or loss arising from changes in ownership ii. Changes in non-controlling interest 2 (b) Prepare the consolidation adjusting entries for the year ended 31 December
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