Reference no: EM132962016
1. Gotham Ltd purchased 100% of the issued shares in City Ltd on 1 July 2017 for $70 000. City Ltd's assets were all recorded at fair value, except for land which was undervalued by $12,000.
2. On acquisition shareholders' funds of City Ltd were as follows:
Contributed capital $50 000
Retained earnings/(loss) $(2 000)
$48 000
3. Directors determined that $1,000 be recognised annually for goodwill impairment loss.
During the 2018/2019 financial year:
4. Intra-group sales were $30 000, of which the following amounts of unrealised profit were in inventory: at the beginning of the year $4,000; at the end of the year $8,000.
5. On 1 July 2018 City Ltd sold an item of plant to Gotham Ltd making a profit on sale of $1,000. On sale, the plant had accumulated depreciation of $25,000 and a remaining life of 4 years.
6. Gotham Ltd charged City Ltd a management fee of $5,000, which was paid.
7. Gotham Ltd declared and paid dividends of $17 000. City Ltd declared and paid dividends of $5 000.
Required:
Problem 1: Prepare all consolidation/elimination journal entries for the year ending 30 June 2019 assuming a tax rate of 30%.
|
What is the impact of transaction on the financial statement
: What is the impact of transaction on the financial statement elements? Oasis Inc sold and issued 1,000 preferred shares at $12 cash per share
|
|
How much should be allocated to Partner Samson
: If the partnership had net income of P66,000, how much should be allocated to Partner Samson, assuming that the provisions of the profit and loss agreement
|
|
What is the financial advantage or disadvantage
: If Collins Co. accepts the order, it will have no effect on other customers. What is the financial advantage or disadvantage of accepting the special order
|
|
How would fcl record the transaction
: How would FCL record this transaction? FinCore Limited ("FCL") was recently incorporated and did not have excess cash on hand.
|
|
Prepare consolidation journal entries for year ending june
: Gotham Ltd purchased 100% of the issued shares, Prepare consolidation/elimination journal entries for the year ending 30 June 2019 assuming a tax rate of 30%.
|
|
What will be the increase in judys taxable income
: At the beginning of the year, she had a balance of $13,000 in her cumulative eligible capital account. What will be the increase in Judys taxable income
|
|
Do agree treatment will eliminate intragroup sales
: Do you agree this treatment will eliminate intragroup sales of inventory for the year ending 30 June 2020? If so, why? If not, provide both an explanation
|
|
Calculate the roi and residual income for each division
: Calculate the ROI and residual income for each division of Lovely and briefly explain which manager will get the bonus. What are the advantages of each measure
|
|
Cloud security threats
: What cloud security threats have the potential to affect a university's staff and its students
|