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Find the consolidation journal entry

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Question - P Ltd paid $500 million to acquire 90% of S Ltd on 31 December 20x8 when S Ltd's net assets were represented by share capital of $100 million and retained profits of $100 million. On this date, S Ltd has an unrecognized brand that is deemed to have a fair value of $100 million. The group policy was to measure non-controlling interest based on its share of the acquisition-date fair value of identifiable net assets of subsidiary acquired. For 20x8 consolidation, find the consolidation journal entry for "Non-controlling interest"?

1. Dr Share capital $10 million, Dr Beginning retained profit $10 million, Dr Goodwill $23 million, Cr Non-controlling interest $43 million.

2. Dr Share capital $10 million, Dr Beginning retained profit $10 million, Cr Non-controlling interest $20 million.

3. None of the listed choices.

4. Dr Share capital $10 million, Dr Beginning retained profit $10 million, Dr Brand $10 million, Dr Goodwill $23 million, Cr Non-controlling interest $53 million.

5. Dr Share capital $10 million, Dr Beginning retained profit $10 million, Dr Brand $10 million, Cr Non-controlling interest $30 million.

Reference no: EM132634273

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