Pedo ine. owns 75% of Sardvo ine, which a purchased on January 1, 2021 for $2,400,000. Pedro uses the tair value enterorise method to calculate the value of the ren-controling interest On thas date, Sando 's net ansets were as folons: The boek valus and tar maket values of Sindrors identifuble antets and labilties on the date of aceuhiton weve equal enctot as reted below: purchased from Sandre. Aurng 2022, Sundre sold swe0,000 of hientory ts Pedro and 346,000 of these cales remained in Pedov invertary a December 3t, 2622. A Cecember 3t 200t, Surdre had 133,000 of inwentory purchuted tsom Pedro during 202L. During 2022 Pedro vold Al sales of both companies ave priced no provibe the seler with a gross proft of 60%. The goodwil asoeciated wath his butiness conbination was tested for impaiment on Dectember 31,2022 and nas fourd bo be imoared be 3124000 . Sindro's Net heome and Cisidends for 2027 and 2022 ane shown betion. Sander he y cetained ewnings on December 31,2002 mere 51285,000. Boch comeanies are subect to a tax rue of 40%. Repulest. 1. Prepare a calculation of the poodi al aring from this trancaction at the date of aceuision along wath an aliocation of the fair value difiecences and an amortization schedule for the acquition deferential. (9 Marks) 2. Prepare a schedule of the intercompary transactions aftecting the 2022 consolidated net income of Pedro he. (5 Marks) 3. Calculate the net income attributed to beth the shareholiders of Pedro lne. and to the non-controiling interest S. Caculabe the amount of the nos-cortroling interest (TaCi) on the December 31, 202d consoldated statement of financial polition of Pedre hne (5 Marks) 6. What amount nould be recorded on fedros December a1, 2022 consoldsed statement of finuncial position as defecred income tas related ta bis burinest combination? (3 Mark) Pedo ine. owns 75% of Sardvo ine, which a purchased on January 1, 2021 for $2,400,000. Pedro uses the tair value enterorise method to calculate the value of the ren-controling interest On thas date, Sando 's net ansets were as folons: The boek valus and tar maket values of Sindrors identifuble antets and labilties on the date of aceuhiton weve equal enctot as reted below: purchased from Sandre. Aurng 2022, Sundre sold swe0,000 of hientory ts Pedro and 346,000 of these cales remained in Pedov invertary a December 3t, 2622. A Cecember 3t 200t, Surdre had 133,000 of inwentory purchuted tsom Pedro during 202L. During 2022 Pedro vold Al sales of both companies ave priced no provibe the seler with a gross proft of 60%. The goodwil asoeciated wath his butiness conbination was tested for impaiment on Dectember 31,2022 and nas fourd bo be imoared be 3124000 . Sindro's Net heome and Cisidends for 2027 and 2022 ane shown betion. Sander he y cetained ewnings on December 31,2002 mere 51285,000. Boch comeanies are subect to a tax rue of 40%. Repulest. 1. Prepare a calculation of the poodi al aring from this trancaction at the date of aceuision along wath an aliocation of the fair value difiecences and an amortization schedule for the acquition deferential. (9 Marks) 2. Prepare a schedule of the intercompary transactions aftecting the 2022 consolidated net income of Pedro he. (5 Marks) 3. Calculate the net income attributed to beth the shareholiders of Pedro lne. and to the non-controiling interest S. Caculabe the amount of the nos-cortroling interest (TaCi) on the December 31, 202d consoldated statement of financial polition of Pedre hne (5 Marks) 6. What amount nould be recorded on fedros December a1, 2022 consoldsed statement of finuncial position as defecred income tas related ta bis burinest combination? (3 Mark)
