‘The following are the financial statements relating to Black, a limited liability company, and its subsidiary ‘company Bury. ‘STATEMENTS OF PROFIT OR LOSS FOR THE YEAR ENDED 31 OCTOBER 20X5 Black $000 Sales revenue 245,000 Cost of sales (140,000) ‘Gross profit THOT Distribution costs (12,000) Administrative expenses; (55,000) Dividend income trom Beary 7,000 Profit before tax 45,000 Tax (13,250) Profit for the year ‘STATEMENTS OF FINANCIAL POSITION AS AT 31 OCTOBER 20X5 Black $000 $000 000 Assets Non-current assets Property, plant and equipment 110,000 Investments 21,000,000 $1 ordinary shares in Bury at cost 21,000 TS1,000 ‘Current assets Inventory, at cost 3,890 Trade receivables and dividend receivable 6.280 Bank 2.570 Total assets 31,500 162,500 Equity and liabilities Equity $1 Oreinary shares 100,000 Retained earnings 33,500 133,500 ‘Current liabilities. Payables 2,460 Dividend 10,000 Total equity and liabilities 29,000 162,500 Additional information 12 Ba.7 a al (() Black purchased its $1 ordinary shares in Bury on 1 November 20XO. At that date the balance on Buny’s retained earnings was $2 million. The fair value of the nan-contralling interest at the date of acquisition was $11,800,000. Goodwill on acquisition was $800,000. (2) During the year ended 31 October 20X5 Black sold goods which originally cost $12 million to Bury. Black invoiced Bury at cost plus 40%. Bury still has 30% of thase goods in inventory at 311 October 20X5. (@) Bury owed Black $1.5 million at 31 October 20X5 for some of the goods Black supplied during the year.‘Task 1 Black purchased its shames in Bury on 1 November 20X0. Goadwill en acquisition wes $800,000. What was the amount paid by Black a squire the sharest st the informatio in aoe 1) sL__d 6 mars) Task 2 The dividend due ta Block ho Bury wil be: ©) neluced in consalidated pet or the year Eliminated on consolidation (4 marks} Task 3 Wat iste amount ofthe urease proton ne intragroup sie? sc Stow how tis i poste: vet = cREDIT rventcey ° fata a a0 earings. (3 marks) Task 4 Bury owed Black $1.5 milion for goods supplied. How will this be eerounted for in the consolidated financial statements? Dest = CREDIT Payables ° ° Receivables Q ° (1 marks) Task S Nori-controling interest will appear in bath the consuikdated statement af profit oF lass (SPL) and Ine consolidated statement of financial position (SFP). Tne sriount of non-tontroling interest inthe consolidated SPL is $| Flin the blanks to calculate the amount of nan-controlling Inlerest in the consolidated SFP $ Fait value at acquisition ‘Share of post-acquisition retained earnings Total