Step 1 Calculation Excess FV

Investment Cost 2,700

Implied FV (90%) 3,000
BV of Sun 2,400
Excess FV over BV 600 Allocated to Patents
10 years
NCI at Acquisition 300

Calculation Amortization Patent

Beginning 600
Amortization 2016 60
Ending 2016 540
Amortization 2017 60
Ending 2017 480

Jurnal Parent
1/7/2016 Cash 350.00
Machinery 280.00
Gain on Machinery 70.00
Jurnal Eliminasi
12/31/2016 Gain on Machinery 70.00
Machinery 70.00
12/31/2016 Accumulated Depreciation 10.00
Depreciation Expense 10.00

a Sales 720
COS 720
b COS 120
Inventories 120
c Investment in Sun 100
COS 100
d Investment 60
Depreciation Expense 20
Machineries - Net Accumulated Depreciation 40
e Gain on land 50
Land 50
f Income from Sul 346
Investment in Sun 166
Dividend 180

g Capital Stock $ 1,500

Retained Earnings $ 1,200
Patents 540
Investment in Sul 2,916
Noncontrolling interest 324
 k Noncontrolling interest share 44
Dividend 20
Noncontrolling interest 24

i Account payable 100

account receivable 100
h Amortization expenses 60
Patents 60
j Dividend payable 180
Dividend receivable 180
 Step 2 Calculate Income From Subsidiary and NCI Share

Sun Income
Amortization
Unrealized Profit In EI
Realized Profit In BI
Unrealized gain on land
Piecemeal recognition profit on machinery

Income from Sun

Step 3 Calculate Investment in Subsidiary and NCI
Option 1: Calculate From Beginning Equity
Mutation Investment
Share x beginning equity
Add : Patent
Amortization
Beginning investment
Less : unrealised profit on BI inventory
Less: Unrealized proft on machinery
Add: Piecemeal recognition of profit on machinery
Income from Sun

Dividend
Ending Investment
Option 2: Calculate From Ending Equity
Ending Equity -2012
Ending Patent -2012
Unrealises Profit of Ending Inventories
Unrealized profit on sale of land
Unrealized profit on sale of machinery

Ending Investment

Investment in Sun 60.00 Cons

Accumulated Depreciation 10.00 Pam Co
Machineries 70
Accumulated Depreciation 20
Depreciation Expense 20
Income Statement
Sales
Income from Sun
Gain on land
Cost of Sales
Operating expenses
Consolidated Net Income
Noncontrolling interest share
Controlling share of net income

Retained Earnings
Retained Earnings - Pam
Retained earnings - Sun
Net Income
Dividends

Retained earnings -Dec 31

Balance Sheet
Cash
Account receivable
Dividend receivable
Inventories
Land
Buildings - net
Machinery - net
Investment in Sun

Patents

Account payable
Dividend payable
Other liabilities
Capital Stock, $10 par
Retained earnings

Noncontrolling interest January 1

Noncontrolling interest December 31
iary and NCI Share
Parent NCI
Total 90% 10%

500.00 450.00 50.00

(60.00) (54.00) (6.00)
(120.00) (120.00)
100.00 100.00
(50.00) (50.00)
20.00 20.00

346.00 44.00
diary and NCI

Parent NCI
2,700.00 2,430 270
600.00 540 60
(60.00) (54.00) (6.00)
2,916 324 -
(100) (100) -
(70) (70) -
10 10 -
346 44

$ (200) (180) (20)

2,922 348

3,000.00 2,700.00 300.00

480.00 432.00 48.00
(120.00) (120.00) - Defer ending inventory di 2017
(50.00) (50.00) Unrealised di 2017
(40.00) (40.00) Sisa unrealized profit machinery di akhir tahun 2017

2,922 348
-
Consolidated Working Paper
Pam Corporation and Subsidiary
31-Dec-17
Adjustment & Elimination
Pam Sun Debit Credit Consolidated Statements

$ 4,500 $ 1,900 a $ 720 $ 5,680

$ 346 $ - f $ 346 $ -
$ 50 e $ 50 $ -
$ (2,000) $ (1,000) b $ 120 a,c $ 820 $ (2,300)
$ (1,130) $ (400) h $ 60 d $ 20 $ (1,570)
$ 1,810
k $ 44 $ (44)
$ 1,766 $ 500 $ 1,766
$ 2,000 $ 2,000
$ 1,200 g $ 1,200 $ -
$ 1,766 $ 500 $ 1,766
$ (1,500) $ (200) f $ 180 $ (1,500)
$ 20
$ 2,266 $ 1,500 $ 2,266

$ 1,364 $ 140 $ 1,504

$ 1,800 $ 1,000 i 100 $ 2,700
$ 180 $ - j 180 $ -
$ 600 $ 360 b 120 $ 840
$ 1,000 $ 300 e 50 $ 1,250
$ 2,800 $ 800 $ 3,600
$ 3,300 $ 1,400 d 40 $ 4,660
$ 2,922 c $ 100 f 166 $ -
d $ 60 g 2,916
$ - $ - g $ 540 h 60 $ 480
$ 13,966 $ 4,000 $ 15,034

$ 2,000 $ 500 i $ 100 $ 2,400

$ 300 $ 200 j $ 180 $ 320
$ 1,400 $ 300 $ 1,700
$ 8,000 $ 1,500 g $ 1,500 $ 8,000
$ 2,266 $ 1,500 $ 2,266
$ 13,966 $ 4,000 $ 14,686
g 324 324
k 24 24
5020 5020 $ 15,034
$ -