User Account

All Pages

Prepare the consolidation adjustments for the year ended

Assignment Help Accounting Basics
Reference no: EM133123310

Question - Green Ltd purchased 90 percent of the issued capital and in the process gained control over Maroon Ltd on 1 July 2018. Green Ltd paid a 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 had an operating profit of $405,000.

b) Maroon Ltd declared a dividend of $98,000 during the period.

c) 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. The tax rate is 30%.

Required -

a) Prepare the acquisition analysis assuming the full goodwill method.

b) Prepare the consolidation adjustments for the year ended 30 June 2020, and based on the information provided above, calculate the non-controlling interests at 30 June 2020. Assume the full goodwill method.

c) The effects of all intragroup transactions must be adjusted for when calculating the non-controlling interest share of a subsidiary's equity. Explain.

Reference no: EM133123310

Questions Cloud

Country culture affects preferences for leadership styles : Assess how each country's culture affects preferences for its leadership styles. Compare and contrast the two countries' leadership styles.
Determine the desired ending inventory for august : Each month's ending inventory should be equal to 10% of the next month's sales in units. Determine the desired ending inventory for August
Create a Sankey diagram of Canadas greenhouse gas : Create a Sankey diagram of Canadas greenhouse gas emissions in 2015. Specifically, create a sankey diagram that shows the contribution of greenhouse gas
What the new depreciation charge : An asset purchased for $60,000 with a residual value of $10,000 was expected. What the new depreciation charge using the straight line depreciation method
Prepare the consolidation adjustments for the year ended : Prepare the consolidation adjustments for the year ended 30 June 2020, and based on the information provided above, calculate the non-controlling interests
Determine the inventory turnover : A company reports the following: Cost of goods sold $566,480. Determine (a) the inventory turnover and (b) the number of days' sales in inventory
Differences between civil law and criminal law : Identify the differences between civil law and criminal law and explain how equity provides a remedy for civil infractions.
Show the effects of the four adjusting journal entries : Depreciation of $13,600 for the year on equipment was not recorded. Show the effects of the four adjusting journal entries
Working for when reviewing list of benefits : Research two different companies you might be interested in working for when reviewing their list of benefits,

Reviews

Write a Review

Accounting Basics Questions & Answers

  Determine the predetermined overhead rate

Compute cost of goods sold for the year (assume no beginning inventories and no underapplied or overapplied overhead).

  Estimate first-year cost of college after adjustment

Assume that the current annual costs for your client's choice of college for this son are $45,000. Estimate first-year cost of college after adjustment

  What is the initial cost of the second alternative

What is the initial cost of the second alternative so that the two methods are in the BEP condition with the KPK Horizon if the MARR set is 18%?

  Compute the amount of accounts receivable

Compute the amount of accounts receivable that Malzahn wrote-off during the year and the amount of accounts receivable at the beginning of the year

  Roxbury manufacturing company is a privately owned business

Roxbury Manufacturing Company is a privately owned business. Products manufactured by Roxbury had been doing very well until the year

  Discuss the fasb and its constituents

Evaluate if the implicit contract (economic liability) view of pensions meets the definition of an accounting liability. What contradiction exist in SFAS.

  Determine the annual net cash flow from operating the ship

The variable expenses per passenger are estimated to be $75 per cruise day. Determine the annual net cash flow from operating the cruise ship

  Should ligaya management proceed with capital and why

Management is considering a change in the capital structure to 30 percent debt. Should LIGAYA's management proceed with the capital structure change? Why?

  What were total assets and total stockholders equity

What were total assets and total stockholder's equity (deficit)? Calculate Working Capital (Current Assets - Current Liabilities = Working Capital).

  Compute the effect of the HSA transactions

Evan has $100 per month deducted from his paycheck and contributed to the HSA. Compute the effect of the HSA transactions

  Which option should chris choose and why

Assuming Chris can earn a 4% rate of return on any money invested during this period, which option should he choose? Why?

  Month budgeted sales may 46000 june 50000 july 52000 august

bronze corporation has the following information month budgeted sales may 46000 june 50000 july 52000 august 48000 the

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd