Determine and comment on the consolidation adjustments

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Reference no: EM131340697

Mini Company is a wholly owned subsidiary of Maxi Company. At the end of the present accounting period, the following items will affect the consolidated financial statements:

1. During the year, Mini Company sold goods to Maxi Company for EUR 337 million. The cost of these goods for Mini Company was EUR 285 million. Maxi Company sold all these goods to third parties.

2. Maxi Company owes Mini Company EUR 75 million (trade payables).

3. Mini has a payable to Maxi for a long-term loan from Maxi for EUR 400 million.

4. Maxi earned interest for EUR 20 million from this loan during the year. Determine and comment on the consolidation adjustments that would be needed to prepare the consolidated financial statements.

Reference no: EM131340697

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