Compute on the consolidated financial statements for year

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Reference no: EM132691950

On July 1, Year 5, Big purchased 80% of the outstanding common shares of Little for $122,080. On that date, Little's equipment had a fair value that was $21,600 less than carrying amount. The equipment had accumulated depreciation of $20,000 and an estimated remaining useful life of 8 years. Also, at the date of acquisition, Little had an exclusive contract with the provincial government to perform periodic environmental audits of selected mining companies for the next five years. An independent business valuator indicated that a third party might pay up to $50,000 to take over this contract. All other assets and liabilities had carrying amounts equal to fair values. On June 30, Year 6, goodwill had a recoverable amount of $20,000.

Problem 1: Compute the following on the consolidated financial statements for the year ended June 30, Year 6:

a. Computation and Allocation of Acquisition Differential on date of acquisition July 1, Year 5

b. Statement of amortization and impairment of acquisition differential for the year ended June 30, Year 6.

c. Non-Controlling interests (NCI) on Big's Consolidated Statement of Financial Position, June 30, Year 6.

d. Profit attributable to Big's Shareholders for the year ended June 30 Year 6

e. Profit attributable to Non-Controlling Interests (NCI) for the year ended June 30, Year 6

f. Consolidated Retained Earnings beginning of year July 1, Year 5

Reference no: EM132691950

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