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Impairment loss on goodwill ( - ) ( - ) ( - ) Consolidated profit 84,900 26,000 110,900 Step 7: Profit or loss attributable to ow
Profit attributable to owners of the parent (Step 7) 104,400 Profit attributable to NCI (Step 7) 6,500 Profit for the year 110,9
7: Profit or loss attributable to owners of pare Profit or loss attributable to owners of parent and NCI Owners of parent NCI Consoli- date
p 7) 6,500 Profit for the year 110,900 SUMMARY OF ANSWERS TO REQUIREMENTS a. Gain (loss) on extinguishment of bonds = (20,000) lo
wners of parent NCI Consoli- dated Parent's profit before FVA (Step 6) 84,900 N/A 84,900 Share in Sub.’s profit before FVA (c) 19,500 6,5
nguishment of bonds = (20,000) loss (Step 1) b. Consolidated bonds payable = 0 (Step 1) c. Consolidated financial statements (See above)
’s profit before FVA (c) 19,500 6,500 26,000 Depreciation of FVA ( - ) ( - ) ( - ) Share in impairment loss on goodwill ( - ) ( - ) ( - ) Totals 104,
financial statements (See above) PROBLEM 4: MULTIPLE CHOICE: COMPUTATIONAL 1. D Solution: Sales by Parent 400,000 Sales by Subsid
n goodwill ( - ) ( - ) ( - ) Totals 104,400 6,500 110,900 (c) Shares in Sub.’s profit before FVA (Step 6 ): (26,000 x 75%); (26,000 x 25%) Requ
by Parent 400,000 Sales by Subsidiary 280,000 Less: Intercompany sales during the year (squeeze) (64,000) Consolidated sales 616,000 2
6,000 x 75%); (26,000 x 25%) Requirement (c): Consolidated financial statements Consolidated ASSETS Investment in subsidiary (at cost) -
000) Consolidated sales 616,000 2. A Solution: Cost of sales of Parent 300,000 Cost of sales of Subsidiary 220,000 Less: Intercompany sale
nvestment in subsidiary (at cost) - eliminated - Investment in bonds Other - eliminated - r assets (650,000 + 64,000) 714,000 Goodwill
y 220,000 Less: Intercompany sales during the yr. (see prev. sol’n) (64,000 ) Add: Unrealized profit in ending inventory (squeeze) 6,000 L
0,000 + 64,000) 714,000 Goodwill (Step 3) 78,000 TOTAL ASSETS 792,000 LIABILITIES AND EQUITY Accounts payable (52, Accounts paya
ding inventory (squeeze) 6,000 Less: Realized profit in beginning inventory - Add: Depreciation of FVA on inventory Add: Depreciation o
ounts payable (52, Accounts payable (52,000 + 150,000) 000 + 150,000) 202,000 202,000 Bonds payable (at face amount) - eliminated -
on inventory Add: Depreciation of FVA on inventory - Consolidated cost of sales 462,00 0 3. C Solution: Cost of sales of Parent 400,000
n: Cost of sales of Parent 400,000 Cost of sales of Subsidiary 350,000 Less: Intercompany sales during the y