The following scenario relates to questions 16-20 On 1 January 20X4 Bee purchased 75% of Wasp's 1 million $1 shares for $3.2 million cash, plus $1 million payable in three years' time. The share price of Wasp as at 1 January 20X4 was $1.75, and Wasp had retained earnings at this date of $2.9 million, and no other components of equity. All of Wasp's net assets at this date were equal to their carrying amounts, with the exception of a property with a carrying amount of $1.1 million, and a fair value of $1.6 million. Bee measures the non-controlling interest at acquisition at fair value, and for this purpose the share price of Wasp at acquisition represents fair value. During the year ended 31 December 20X4, Wasp sold goods to Bee totalling $750,000, all at a margin of 20%. Half of these goods remain in the year-end inventories of Bee. Bee has a cost of capital of 9%, giving the following discount factors: Year 1 0.92 Year 2 0.84 Year 3 0.77 16 17 What is the fair value of the non-controlling interest as at 1 January 20X4? $ What is the fair value of consideration payable by Bee? 18 A $4,200,000 B $3,970,000 C $4,040,000 D $3,200,000 What is the impact of the adjustment for unrealised profit on the consolidated statement of financial position balances at 31 December 20X4? Choose THREE from the options below. A Debit Inventory B Debit Group retained earnings $75,000 $75,000 C Debit Group retained earnings $56,250 D Debit Non-controlling interest $18,750 E Credit Inventory $75,000 F Credit Group retained earnings $75,000 G Credit Group retained earnings $56,250 H Credit Non-controlling interest $18,750