Reference no: EM132605672
On 1 July 2019, ABC Ltd acquired a portion of XYZ Ltd and they use the partial method to account for the 10% share of the NCI. ABC Ltd acquired their portion of the equity at a cost of $500,000 when share capital had a balance of $350,000 and retained earnings was $100,000. Property was required to be revalued on acquisition date. On the books of XYZ Ltd, property was recorded as $950,000. ABC Ltd had an independent valuation completed which confirmed the asset could be sold for $1,000,000. On 1 July 2019, XYZ Ltd sold plant to ABC Ltd that cost $50,000 and had accumulated depreciation $20,000. The selling price of the plant was $40,000. At the date of sale, the plant could be depreciated straight line, 25% per year.
Pre-tax profit for 30 June 2020 is $100,000. During this year there was intragroup sales totalling $60,000 that had a cost price of $30,000. A quarter of this inventory was still on hand at the end of this year. The tax rate relating to all transactions to both entities is 30%. A consultancy fee of $10,000 was paid by the subsidiary to the parent.
Required:
Question 1: Calculate any non-controlling interest. Show all intragroup entries and full workings.
|
Regarding technological advancement and society
: What challenges are entrepreneurs faced with today regarding technological advancement and society?
|
|
Journalize the entries required on each date
: The declaration, record, and payment dates in connection with a cash dividend of $90,000. Journalize the entries required on each date
|
|
What is Friedmans net pay
: Employee Net Pay - Assuming the social security tax rate is 6% and Medicare tax is 1.5% of all earnings, what is Friedman's net pay
|
|
Hazardous materials
: Abstract: Hazardous materials have many ways in which they can be made like explosives, flammable substances, radioactive ingredients,
|
|
Solve any non-controlling interest
: During this year there was intragroup sales totalling $60,000, Calculate any non-controlling interest. Show all intragroup entries and full workings
|
|
Conduct force field analysis on issue
: Conduct a force field analysis on an issue in your organization. What are the driving and restraining forces affecting this issue?
|
|
Solve direct and indirect non-controlling interest
: The tax rate is 30%. In the space provided - show goodwill entries, intragroup transactions and calculate direct and indirect non-controlling interest.
|
|
Describing your own cultural heritage and traditions
: Describing your own cultural heritage and traditions and exploring possible origins of your values, worldviews, and behaviors.
|
|
Prepared the sum of three major components
: When an annual statement of cash flow is prepared the sum of three major components, operating activities, investing activities and financing activities
|