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Assignment 6-2
Assignment 6-2
AQ Cost 84,000
implied cost 120,000
Calculation AD
(Note A-L or Use CS +RE)
ordinary shares (B/S) 50,000
RE 18,000 68,000
Acquisition differential 52,000
Allocation of FV FV-CA
Inventories (15,000)
unfavourable lease agreeme (21,000)
Totals (36,000)
Goodwill 88,000
intercompany profits
B/Ftax Tax 40% After Tax
land- sage selling to post 34000 13600 20400
opening inventory - sage sel 4250 1700 2550
ending inventory-sage to po 7500 3000 4500
ending inventory-post sellin 5250 2100 3150
12750 5100 7650
Consolidated NI
Profit - Post 80610
less: equity method income from sage 3010
less: profit in ending inventory 3150 6160
adjusted profit 74450
attributable to
Shareholders of Post 80610
NCI 2,640
83250
attributable to
Shareholders of Post 80,610
NCI 2,640
83,250
-34000
-13000
-13000
-12750
Working Paper
tement
6
Entries
Cr. Consolidated
0 887,000
0 0
0 3,060
0 0
0 0
890,060
219,250 468,500
3,240 18,160
31,200 225,800
0 1,350
18,700 93,000
806,810
83,250
0 80,610
0 2,640
272,390 83,250
0 165,370
272,390 80,610
245,980
0 0
272,390 245,980
34,000 159,000
13,000 559,000
0 -230,000
177,170 0
1,350 83,410
0 18,700
12,750 49,250
58,000 0
0 25,300
0 23,600
688,260
0 100,000
272,390 265,600
54,333 54,333
0 0
12,600 8,400
0 259,927
635,593 688,260
-
-
0.70
AQ Cost 98,000.00
implied cost 140,000.00
Calculation AD
(Note A-L or Use CS +RE)
CS 50,000.00
RE 20,000.00 70,000.00
Acquisition differential 70,000.00
-
Allocation of FV FV-CA
Inventories - 17,000.00
unfavourable lease agreements - 23,000.00
Totals - 40,000.00 -
Goodwill 110,000.00
-
intercompany profits
B/Ftax Tax 40% After Tax
land- sage selling to post 38,000.00 15,200.00 22,800.00
opening inventory - sage selling 4,750.00 1,900.00 2,850.00
ending inventory-sage to post 8,000.00 3,200.00 4,800.00
ending inventory-post selling 5,750.00 2,300.00 3,450.00
13,750.00 5,500.00 8,250.00
Consolidated NI
Profit - Post 100,230.00
less: equity method income from sage 1,730.00
less: profit in ending inventory 3,450.00 5,180.00
adjusted profit 95,050.00
attributable to
Shareholders of Post 100,230.00
NCI 2,220.00
102,450.00
attributable to
Shareholders of Post 100,230.00
NCI 2,220.00
102,450.00
Post Sage
Income Statements - Year 6
Sales 950,000 271,000
Management fee revenue 29,000 0
Interest revenue 0 7,300
Investment income from Sage 1,730 0
Gain on sale of land 0 38,000
Total income 980,730 316,300
Cost of goods sold 590,000 196,000
Interest expense 20,500 0
Other expenses 185,000 75,300
Goodwill impairment loss 0 0
Income tax expense 85,000 16,000
Total expenses 880,500 287,300
Profit 100,230 29,000
Attributable to:
Shareholders of Peter 0 0
Non-controlling interest 0 0
Total
Year 6 retained earnings statements
Balance, January 1 166,170 62,000
Profit 100,230 29,000
266,400 91,000
Dividends 0 0
Balance, December 31 266,400 91,000
Statements of Financial Position - December 31, Year 6
Land 180,000 24,000
Plant and equipment 535,000 68,000
Accumulated depreciation -235,000 -22,000
Investment in Sage 143,039 0
Goodwill 0 0
Deferred income taxes 0 0
Inventory 34,000 32,000
Notes receivable 0 58,000
Accounts receivable 17,700 11,400
Cash 12,700 14,400
Total assets 687,439 185,800
Ordinary shares 100,000 50,000
Retained earnings 266,400 91,000
Non-controlling interest 0 0
Notes payable 58,000 0
Unfavourable lease agreement 0 0
Accounts payable 263,039 44,800
Total Shareholders' equity & liabilities 687,439 185,800
SFP
Balance
44,196.00
Y6
-
- 9,200.00
105,070.00
95,870.00
246,000 0 975,000
29,000 0 0
3,480 0 3,820
1,730 0 0
38,000 0 0
978,820
13,750 250,750 549,000
0 3,480 17,020
0 33,600 226,700
1,450 0 1,450
1,900 20,700 82,200
876,370
102,450
0 0 100,230
2,220 0 2,220
337,530 308,530 102,450
62,000 0 166,170
337,530 308,530 100,230
266,400
0 0 0
399,530 308,530 266,400
0 38,000 166,000
0 15,000 588,000
15,000 0 -242,000
63,411 206,450 0
106,520 1,450 105,070
20,700 0 20,700
0 13,750 52,250
0 58,000 0
0 0 29,100
0 0 27,100
746,220
50,000 0 100,000
399,530 308,530 266,400
0 62,781 62,781
58,000 0 0
4,600 13,800 9,200
0 0 307,839
717,761 717,761 746,220
13,750.00
- 15,200.00
-
-