Total equity. Non-current liabilities Long-term borrowings. 2 865 600 1088 000 752 500 446 900 752 500 446 900 Current liabilities Trade and other payables. Bank overdraft.. Current account-Hyking Ltd.. Total liabilities. Total equity and liabilities. 575 200 355 300 145 000 88 300 663 500 500 300 1 416 000 947 200 4 281 600 2035 200 FAC2602-S2-Assessment 1 ASSIGNMENT 01 (Second semester) (continued) Additional information 1. 2. At date of acquisition, the retained earnings amounted to R150 000 and other components of equity amounted to R135 000 in Hyking Ltd. The carrying amount of all other assets and liabilities of Hyking Ltd were considered equal to the fair values thereof. Each ordinary share carries one vote and that voting rights alone determine control. The share capital of Gow Ltd and Hyking Ltd remained the same since acquisition and throughout the current year. Hyking Ltd revalued a property on 30 November 2018 and again on 30 November 2020 in accordance with a two-year revaluation policy. On 30 November 2018, the revaluation amounted to R65 000. No revaluation was carried out in the books of Gow Ltd. The retained earnings balances on 1 January 2020 in Gow Ltd amounted to R1 509 600 and R370 000 in Hyking Ltd. Gow Ltd and Hyking Ltd have bank accounts at the same banking institution, with no bank guarantees. 3. The profit for the current year for Hyking Ltd is R128 000 and R435 800 for Gow Ltd. 4. Both companies declared dividends in the current year amounting to R35.000 for Hyking Ltd and R85 000 for Gow Ltd. It is the group's policy to disclose goodwill at cost less impairment in the consolidated financial statements. Goodwill was not impaired during the current year. FAC2602-S2-Assessment 1 SCENARIO SECOND SEMESTER 2022 ASSIGNMENT 01 (30 marks) (36 minutes) Gow Ltd and Hyking Ltd are companies in the tourism industry. Gow Ltd acquired 70% in Hyking Ltd on the 1 August 2017. The following data represents the statements of financial position for the two companies on 31 December 2020: ASSETS Non-current assets Property, plant and equipment... Investment in Hyking Ltd at cost price (fair value equals cost price)...... Other investments (fair value)..... Current assets Inventory. Trade and other receivables. Cash and cash equivalents. Current account-Gow Ltd. Total assets. EQUITY AND LIABILITIES Share capital-ordinary shares (290 000/180 000 shares). Other components of equity.. Retained earnings.. Total equity..... Non-current liabilities Long-term borrowings... Current liabilities Trade and other payables. Bank overdraft... Current account - Hyking Ltd.. Total liabilities. Total equity and liabilities. 3 Gow Hyking Ltd Ltd R R 1 865 000 899 000 610 000 370 000 2 845 000 280 000 1179 000 441 380 342 900 740 000 425 000 255 220 88 300 1 436 600 856 200 4 281 600 2035 200 730 000 370 000 275 200 255 000 1860 400 463 000 2 865 600 1088 000 752 500 446 900 752 500 446 900 575 200 355 300 - 145 000 88 300 663 500 1416 000 4 281 600 500 300 947 200 2035 200 || Question 1 Not yet answered Marked out of 2 The scenario for this assignment is loaded under Additional Resources. Refer to Assessment 1 Scenario and download this document Please use it to answer all the questions in this assessment. The closing balance of the revaluation surplus for the year in the consolidated statement of changes in equity amounts to: O a. R359 200 O b. R313 700 OR320 700 Od R395 200 Question 2 Not yet answered Marked out of 2 The scenario for this assignment is loaded under Additional Resources. Refer to Assessment 1 Scenario and download this document. Please use it to answer all the questions in this assessment. Non-current assets (excluding goodwill) amounts to: O a. R2 845 000 b. R4 024 000 OCR1 179 000 O d. R3 414 000 Question 3 Not yet answered Marked out of 2 The scenario for this assignment is loaded under Additional Resources. Refer to Assessment 1 Scenario and download this document. Please use it to answer all the questions in this assessment. The opening balance of non-controlling interests in the consolidated statement of changes in equity amounts to: O a R196 500 O b. R 85 500 O c. R282 000 d. R262 500 Question 4 Not yet answered Marked out of 2 The scenario for this assignment is loaded under Additional Resources. Refer to Assessment 1 Scenario and download this document. Please use it to answer all the questions in this assessment. Select the correct answer. The process used to determine the goodwill amount where the parent holds a 90% shareholding in a subsidiary, consists of the following: Investment in subsidiary minus 90% of the (Share capital Retained earnings Other components of equity) equity of the subsidiary. O b. Investment in subsidiary minus 100% of the (Share capital + Retained earnings + Other components of equity) equity of the subsidiary. O Investment in subsidiary minus 90% of the (Share capital + Retained earnings + Other components of equity) equity of the subsidiary plus 10% of the (Share capital + Retained earnings + Other components of equity) equity of the subsidiary. Od. Investment in subsidiary minus 90% of the (Share capital + Retained earnings + Other components of equity) equity of the subsidiary minus 10% of the (Share capital + Retained earnings + Other components of equity) equity of the subsidiary Question 5 Not yet answered Marked out of 2 The scenario for this assignment is loaded under Additional Resources. Refer to Assessment 1 Scenario and download this document. Please use it to answer all the questions in this assessment. Select the correct answer. The consolidated statement of financial position of the group will reflect the following: O a. The goodwill amount under current assets. O b. The retained earnings amount of the subsidiary at year-end under equity. The share capital amount of the parent and the subsidiary at year-end as equity. Od. The total of non-controlling interests at year-end will be shown separately under equity. Question 6 Not yet answered Marked out of 2 The scenario for this assignment is loaded under Additional Resources. Refer to Assessment 1 Scenario and download this document" Please use it to answer all the questions in this assessment. The total comprehensive income, attributable to owners of the parent in the consolidated statement of profit or loss and other comprehensive income amounts to: a. R580 400 b. R563 900 C. R539 400 d. R594 300 Question 7 Not yet answered Marked out of 2 The scenario for this assignment is loaded under Additional Resources. Refer to Assessment 1 Scenario and download this document. Please use it to answer all the questions in this assessment. Total liabilities amounts to: O a. R2 363 200 O b. R2 274 900 O c. R1 416 000 O d. R 947 200 = Question 8 Not yet answered Marked out of 2 The scenario for this assignment is loaded under Additional Resources. Refer to Assessment 1 Scenario and download this document. Please use it to answer all the questions in this assessment. Dividends paid by Hyking Ltd to Gow Ltd as disclosed on the consolidated statement of changes in equity amounts to: O a. R85 000 O b. Rnil R35 000 O d. R24 500 Question 9 Not yet answered Marked out of 2 The scenario for this assignment is loaded under Additional Resources. Refer to Assessment 1 Scenario and download this document. Please use it to answer all the questions in this assessment. Select the correct answer. A 65% held subsidiary would be reflected as follows in the consolidated financial statements of the group: O a. 100% of the income and expenses of the parent and subsidiary for the year. O b. 100% of the parent's income and expenses and 65% of the income and expenses of the subsidiary for the year. O c. 65% of the assets and liabilities in the statement of financial position. Od. 65% of the profit or loss for the year disclosed as retained earnings on the statement of financial position. Question 10 Not yet answered Marked out of 2 The scenario for this assignment is loaded under Additional Resources. Refer to Assessment 1 Scenario and download this document. Please use it to answer all the questions in this assessment. Dividends paid as disclosed on the consolidated statement of changes in equity for non-controlling interests amounts to: Oa. R35 000 O b. R10 500 O c. R24 500 d. R25 500