1.

Consideration transferred 560,000

NCI (600,000 X 30%) 180,000
Total 740,000
FV of identifiable net assets
(690,000 – 90,000) (600,000)
Goodwill 140,000

2. ABC Co. (Parent) XYZ Co. (Subsidiary)

Cash 100,000 20,000
Accounts receivable 120,000 20,000
Inventory 400,000 100,000
Prepaid assets 30,000 10,000
Building, net 1,200,000 540,000
Goodwill 140,000

Accounts payable 70,000 90,000

Share capital 1,000,000
Share premium 350,000
Retained earnings 990,000
NCI in net assets 180,000

3. ABC Co. (Parent) XYZ Co. (Subsidiary) Consolidated

Cash 100,000 20,000 120,000
Accounts receivable 120,000 20,000 140,000
Inventory 400,000 100,000 500,000
Prepaid assets 30,000 10,000 40,000
Building, net 1,200,000 540,000 1,740,000
Goodwill 140,000 140,000
TOTAL ASSETS 2,680,000

Accounts payable 70,000 90,000 160,000

Share capital 1,000,000 1,000,000
Share premium 350,000 350,000
Retained earnings 990,000 990,000
NCI in net assets 180,000 180,000
TOTAL LIABILITIES & EQUITY 2,680,000