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The following are the financial statements of White and its subsidiary Brown as at 3 0 September 2 0 x 9 : The following information
The following are the financial statements of White and its subsidiary Brown as at September x:
The following information is also available:
White purchased its ordinary shares in Brown on I September X when Brown had credit
balances on reserves of million and on retained eamings of million.
ii At I September goodwil on the acquisition of Brown was The impairment review
at September reduced this to
ii During the year ended September White sold goods which originally cost milion
to Brown and were invoiced to Brown at cost plus Brown still had of these goods in
inventory as at September
iv Brown owed White million at September for goods supplied during the year.
Required:
a Calculate the goodwill arising at the date of acquisition.
b Prepare the consolidaced stacement of income for the year ended September
c Prepare the consolidaced stacement of financial position at September
d Prepare the consolidated statement of changes in equity for the year ended September
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