Reference no: EM132679919

On 1 January 2015 Alpha purchased 80,000 ordinary RM1 shares in Beta for RM180,000. At that date, Beta's retained profits amounted to RM90,000 and the fair values of Beta's assets at acquisition were equal to their book values. Three years later, on 31 December 2017, the balance sheets of the two companies were:

                                                                     Alpha                          Beta

                                                                                             RM                          RM

Sundry net assets                                              230,000                260,000

Shares in Beta 180,000 - ---- ---- 410,000 260,000

Ordinary shares of RM1 each                                     200,000              100,000

Accumulated profits 210,000 160,000 ---- ---- 410,000 260,000

The share capital of Beta has remained unchanged since 1 January 2015. 

Problem 1: What amount should appear in the group's consolidated balance sheet at 31 December 2017 for goodwill?

A) RM25,000 B) RM28,000 C) RM7,000 D) RM14,000

Problem 2: What amount should appear in the group's consolidated balance sheet at 31 December 2017 for NCI?

A) RM52,000 25 B) RM20,000 C) RM34,000 D) RM32,000

Problem 3: What amount should appear in the group's consolidated balance sheet at 31 December 2017 for accumulated profits?

A) RM266,000 B)RM338,000 C) RM370,000 D) RM245,000