please don't attach photo of excel . but you can do in excel and paste here.

NCI means Non controlling Interest..

Question 4 (25 marks) On 1 July 20X3 Blofeld Ltd gained control of Tatiana Ltd by buying 60% of its shares for $59,000. At this date Tatiana had share capital $40,000 and retained profits $30,000. Financial statements for the financial year ended 30 June 20X8 are shown in the worksheet attached. Intercompany inventory sales of the 20X8 financial year totalled $30,000. Blofeld holds inventory purchased from Tatiana in 20X8. The mark-up was $1,480. All of these goods are still in Blofeld inventory at end of year. Blofeld has paid 15% interest on the loan from Tatiana. Goodwill impairment is $750 in financial year ended June 30 20X7 and $850 in 20X8. Dividends are paid out of current period profit. Blofeld has other share investments (not consolidated). On July 1 20X7 Tatiana Ltd purchased a cipher machine (included in Other Assets) from Blofeld Ltd for $5,000. The carrying amount of the machine to Blofeld had been zero. Depreciation policy for Tatiana is 25 percent per annum straight line. Depreciation policy for Blofeld is 40 percent per annum reducing balance. The partial goodwill method is used. REQUIRED Complete the consolidation worksheet on the next page. Sales Cogs Gross profit Other revenues Combined consolidation worksheet as at 30 June 20x8 Blofeld Tatiana Sum Eliminations Group Allocation to Dr NCI Parent 94 000 82 000 176 000 57 000 36 000 93 000 37 000 46 000 83 000 17 000 8 000 25 000 Other expenses (22 000) (36 000) (58 000) 32 000 18 000 50 000 Net profit Retained profits 1 July 20x7 6 600 38 000 44 600 Profit available 38 600 56 000 94 600 less Dividends 27 000 15 000 42 000 Retained profits 11 600 41 000 52 600 Capital 90 000 40 000 130 000 Owners 'equity 101 600 81 000 182 600 Dividend payable 27 000 15 000 42 000 Loan from Tatiana 48 000 48 000 Other liabilities 7 000 52 000 59 000 Accum. depreciation 3 000 3 000 Accum, goodwill Impairment Total equities 186 600 148 000 334 600 Inventory 23 400 24 000 47 400 Divi'd receivable 10 750 10 750 Loan to Blofeld - 48000 48 000 Investm't in Sub 59 000 59 000 Other assets 93 450 76 000 169 450 186 600 148 000 334 600 Question 4 (25 marks) On 1 July 20X3 Blofeld Ltd gained control of Tatiana Ltd by buying 60% of its shares for $59,000. At this date Tatiana had share capital $40,000 and retained profits $30,000. Financial statements for the financial year ended 30 June 20X8 are shown in the worksheet attached. Intercompany inventory sales of the 20X8 financial year totalled $30,000. Blofeld holds inventory purchased from Tatiana in 20X8. The mark-up was $1,480. All of these goods are still in Blofeld inventory at end of year. Blofeld has paid 15% interest on the loan from Tatiana. Goodwill impairment is $750 in financial year ended June 30 20X7 and $850 in 20X8. Dividends are paid out of current period profit. Blofeld has other share investments (not consolidated). On July 1 20X7 Tatiana Ltd purchased a cipher machine (included in Other Assets) from Blofeld Ltd for $5,000. The carrying amount of the machine to Blofeld had been zero. Depreciation policy for Tatiana is 25 percent per annum straight line. Depreciation policy for Blofeld is 40 percent per annum reducing balance. The partial goodwill method is used. REQUIRED Complete the consolidation worksheet on the next page. Sales Cogs Gross profit Other revenues Combined consolidation worksheet as at 30 June 20x8 Blofeld Tatiana Sum Eliminations Group Allocation to Dr NCI Parent 94 000 82 000 176 000 57 000 36 000 93 000 37 000 46 000 83 000 17 000 8 000 25 000 Other expenses (22 000) (36 000) (58 000) 32 000 18 000 50 000 Net profit Retained profits 1 July 20x7 6 600 38 000 44 600 Profit available 38 600 56 000 94 600 less Dividends 27 000 15 000 42 000 Retained profits 11 600 41 000 52 600 Capital 90 000 40 000 130 000 Owners 'equity 101 600 81 000 182 600 Dividend payable 27 000 15 000 42 000 Loan from Tatiana 48 000 48 000 Other liabilities 7 000 52 000 59 000 Accum. depreciation 3 000 3 000 Accum, goodwill Impairment Total equities 186 600 148 000 334 600 Inventory 23 400 24 000 47 400 Divi'd receivable 10 750 10 750 Loan to Blofeld - 48000 48 000 Investm't in Sub 59 000 59 000 Other assets 93 450 76 000 169 450 186 600 148 000 334 600