Reference no: EM133080292
Question - Green Ltd purchased 90 per cent of the issued capital and in the process gained control over Maroon Ltd on 1 July 2018. Green Ltd paid cash consideration of $3 700 000 for Maroon Ltd at this time. The fair value of the net assets of Maroon Ltd at purchase was represented by:
Share capital $3,220,000
Retained earnings 740,000
Total $3,960,000
During the period ended 30 June 2020, the following transactions were recorded:
a) Maroon Ltd paid management fees of $100 000 to Green Ltd.
b) Maroon had an operating profit of $405 000.
c) Maroon Ltd declared a dividend of $98 000 during the period.
d) Green purchased inventory from Maroon for $100 000. The inventory cost Maroon Ltd $85 000 and at the end of the period Green had 35 per cent of that inventory still on hand.
e) Maroon's opening retained earnings was $810 000.
f) Goodwill has been determined to have been impaired by $13,600.
g) Companies in the group use perpetual inventory systems and accrue dividends when they are declared by subsidiaries.
h) There were no other inter-company transactions. Ignore tax implications.
Required - Calculate the non-controlling interests at 30 June 2020.
|
What would be the cost for Company A
: The loan has a 1.59% loan origination fee. What would be the cost for Company A if they decide to borrow from Bank B
|
|
More realistic and complex pricing
: Read and reflect on the assigned readings for the week. Then post what you thought was the most important concept(s), method(s), term(s), and/or any other thing
|
|
Does your marginal cost rise as you spend
: Your marginal cost is the cost of using one more hour to supply tutoring services. Would the marginal cost of your time increase if you spent more hours during
|
|
Describe your production possibilities frontier
: Describe your production possibilities frontier. how specialization and trade can lead to a mutually beneficial outcome.
|
|
Calculate the non-controlling interests at june
: Goodwill has been determined to have been impaired by $13,600. Calculate the non-controlling interests at 30 June 2020
|
|
Obtain the mean and standard deviations
: a) Obtain the mean and standard deviations of the number of text messages by male and female students.
|
|
Calculate the present values of each of the options
: Suppose a family business approaches your bank to borrow $200,000 for the down payment on a set of machinery. Your bank is currently earning 5% annual interest
|
|
Peanut roasting machine
: P. Nutt has a small "batch" peanut roasting machine which is 4'X5' in size with an output of 10 lbs every 15 minutes. Mr. Nutt has a 5,000 square foot building
|
|
Compute the company return on assets ratio for year-end
: If the company has the ending balance of the assets as of 2013, $2,250 million, and equity $1,600 million, Compute company return on assets ratio for 2013
|