TUGAS EXERCISE

AKUNTANSI KEUANGAN LANJUTAN 1

E. 8-1
Alokasi Sango’s Net Income:
Controlling Interest (income)
($250,000 x 60% x 6/12) + ($250,000 x 80% x 6/12) $175,000
NCI Share
($250,000 x 40% x 6/12) + ($250,000 x 20% x 6/12) $75,000
Preacquisition Income
($0) $0
Alokasi Sango’s Dividends:
Dividends to Pablo
($40,000 x 60%) + ($40,000 x 80%) $56,000
NCI
($40,000 x 40%) + ($40,000 x 20%) $24,000
Preacquisition Interest
($0) $0

E. 8-2
1. Cost to obtain control over Edma HF $99,000
Implied fair value of Edma HF ($99,000 / 45%) $220,000
The fair value of 15% interest ($220,000 x 15%) $33,000
Cost to obtain 30% of Edma HF’s interest $31,000
($10,000 + $21,000)
Gain from revaluation of investment in Edma HF $ 2,000

2. Income from Edma HF in 2014 $ 9,000

($60,000 x 60% x 3 /12)

3. Cost to purchase 5% interest $10,000

Cost to purchase 10% interest $21,000
Cost to purchase 45% interest $99,000
Gain on revaluation of investment $ 2,000
Income from Edma HF in 2014 $ 9,000
Investment in Edma HF at the end of 2014 $141,000

E. 8-3
Investment in Siomay $5.400.000
Cash $5.400.000

Investment in Siomay $675.000

Income from Siomay ($750.000 x 90%) $675.000

Cash $50.000
Investment in Siomay $50.000

E. 8-4
Implied FV of investment ($3,500,000 / 80%) $4,375,000

Carrying value of share sold ($4,375,00 x 70%) 3,062,500

Selling value 3,000,000
Loss from the deconsolidation $62,500
E. 8-6
1. Investment in Ngon
Investment balance Dec 31, 2016 ($2,400,000 x 90%) $2,160,000
Cost of new shares ($24 x 100,000 shares) 2,400,000
Investment in Ngon after new investment $4,560,000
2. Goodwill from new investment
Ngon’s stockholders’ equity after issuance
($2,400,000 + $2,400,000) $4,800,000
Huanh’s ownership percentage
(180,000 + 100,000 shares) / 300,000 shares 0,9333
Huanh’s BV after issuance 4,480,000
Less : Huanh’s BV before issuance (2,160,000)
Increase i BV from purchase
(BV acquired) $2,320,000

Cost of 100,000 shares $2,400,000

BV acquired (2,320,000)
Less : undervalued land ($10,000 x 0,9333) 9,333
Goodwill from acquisition of new shares 70,667
Total goodwill ($70,667/0,9333) $75,717,347

P. 8-1
Preliminary computations:
Price to acquire 75% percent interest of Rayan SAL $3,750,000
Implied fair value of Rayan SAL
($3,750,000 / 75%) $5,000,000
Rayan SAL’s stockholders’ equity at July 1 $4,850,000
Excess of fair value over book value $ 150,000

Excess allocated to:

Overvalued inventory ($100,000)
Goodwill $250,000 c
75% of Rayan SAL’s net income for half year $487,500
(75% x ($4,800,000 - $2,700,000 + $150,000 – $950,000) / 2)
Amortization of overvalued inventory $ 75,000
(75% x $100,000)
Unrealized gain on sale of land ($ 112,500)
(75% x $150,000)
Income from Rayan SAL’s $ 450,000 a
25% of Rayan SAL’s net income $ 162,500
(25% x ($4,800,000 - $2,700,000 + $150,000– $950,000) / 2)
Amortization of overvalued inventory $ 25,000
(25% x $100,000)
Unrealized gain on sale of land ($ 37,500)
(25% x $150,000)
Noncontrolling interest share: $ 150,000 b
Investment in Rayan SAL before adjustment $ 3,637,500
Add: Income from Rayan SAL $ 450,000
Adjusted investment in Rayan SAL $ 4,087,500
P. 8-2
1. Pop Corporation membeli 80% saham Son sebesar $10.600.000
Underlying Equity = 80% x$13.000.000
= $10.400.000
Goodwill = excess of investment FV over BV
= $1.000.000
Investment in Son 1, Jan 2018 = Underlying Equity + Goodwill
=$10.400.000 + $1.000.000
= $11.400.000
2. Percentage interest in Son after additional stock issuance
Shares owned 480,000 / 800,000 outstanding shares = 60% interest
3. Journal entry on Pop’s books to adjust for the additional shares issuance
No gain or loss recognized on issuance of additional shares
Investment in Son 1,000
Other PIC 1,000*
*($19,000 x 60%) – ($13,000 x 80%) = 1,000

P. 8-3
Preliminary computations:
Price to acquire 90% percent interest of Piero SAA $3,600,000
Implied fair value of Piero SAA ($3,600,000 / 90%) $4,000,000
Piero SAA’s stockholders’ equity at January 1 $3,800,000
Goodwill $ 200,000 c
Income from Piero SAA’s for the first quarter $ 225,000
(90% x ($4,500,000 - $2,800,000 - $700,000) x 3 / 12)
Income from Piero SAA’s for the last three quarters $ 525,000
(70% x ($4,500,000 - $2,800,000 - $700,000) x 9 / 12)
Income from Piero SAA for 2014 ($225,000 + $525,000) $ 750,000 a
Noncontrolling interest share for the first quarter: $ 25,000
(10% x ($4,500,000 - $2,800,000 - $700,000) x 3 / 12)
Noncontrolling interest share for the last three quarters: $ 225,000
(30% x ($4,500,000 - $2,800,000 - $700,000) x 9 / 12)
Noncontrolling interest share for 2014 $ 250,000 b
Investment in Piero SAA before adjustment $2,835,000
Add: Income from Piero SAA for the las three quarters $ 525,000
Adjusted investment in Piero SAA $3,360,000

Noncontrolling interest January 1:

10% of Implied fair value of Piero SAA at January 1 $ 400,000 c
Noncontrolling interest March 31
20% of implied fair value of Piero SAA at March 31 $ 850,000 c
(20% x ($4,000,000 + $250,000))
P. 8-4
Entries on Pop’s books
Option 1 : Pop sells 30,000 shares of Son
Cash 1,500
Investment in Son 870
Additional PIC 630
To record sale of 30,000 shares at $50 per share. No gain or loss is recognized since Pop maintains a
controlling interest.
Option 2 : Son issues and sells 40,000 shares to the public
Investment in Son 630
Additional PIC 630
To record adjustment in ownership:
BV after sales of 40,000 shares ($12,440 x 75%) $9,330
BV before sales of 40,000 shares ($10,440 x 5/6) (8,700)
Increase in BV of investment from sale $630
Option 3 : Son reissues 40,000 shares of treasury stock
Investment in Son 630
Additional PIC 630

Consolidated stockholder’s equity

At January 1, 2017

Option 1 Option 2 Option 3

Common stock $10,000 $10,000 $10,000
Additional PIC 3,630 3,630 3,630
R/E 7,000 7,000 7,000
NCI 2,610 3,110 3,110
Total stockholder’s equity $23,240 $23,740 $23,740

NCI under option 1 : $10,440 x 25%

NCI under option 2 and 3 : $12,440 x 25%

P. 8-5
Preliminary computations:
Cost of 9,000 shares (90% interest) January 1, 2016 $ 810,000
Implied total fair value of Sun ($810,000 / 90%) $ 900,000
Book value of Sun ($500,000 + $300,000) (800,000)
Excess fair value over book value = Goodwill $ 100,000

1. Investment balance December 31, 2016

Cost January 1, 2016 (9,000 shares ́ $90) $ 810,000
Add: Share of Sun's 2016 income ($50,000 ́ 90%) 45,000
Investment in Sun December 31 $ 855,000

2. Goodwill at December 31, 2017 (Pam purchased additional shares)

Goodwill from January 1, 2016 purchase $ 100,000
Goodwill from January 1, 2017 purchase:
Book value before purchase $ 850,000
Book value after purchase (1,350,000)
Book value acquired (500,000)
Cost of additional 5,000 shares 500,000
Goodwill from January 1, 2017 $0
Goodwill at December 31, 2017 $ 100,000

3. Additional paid-in capital (outsider purchased additional shares)

Book value after issuance ($1,350,000 ́ 60%) $ 810,000
 Book value before issuance ($850,000 ́ 90%) (765,000)
Additional paid-in capital (gain is not recognized) $ 45,000

4. Noncontrolling interest December 31, 2017 (outsider purchased shares)

Subsidiary equity January 1, 2016 $ 800,000
Increase for 2016 50,000
Increase for 2017 70,000
Sale of additional shares 500,000
Book value $1,420,000
Goodwill 100,000
Fair value of Sun equity December 31, 2017 $1,520,000
Noncontrolling interest percentage 6,000/15,000 shares 40%
Noncontrolling interest December 31, 2017 $ 608,000

P. 8-6
1. Investment in Son December 31, 2017
Investment in Son January 2, 2016 $ 98,000
Increase for 2011 ($30,000 retained earnings increase x 70%) 21,000
Purchase of additional 20% interest June 30, 2012 37,000
Increase 2017:
($30,000 ́ 1/2 year ́ 70%) + ($30,000 ́ 1/2 year ́ 90%) 24,000
Dividends 2012: ($10,000 ́ 90%) (9,000)
Investment in Son December 31, 2017 $171,000

2. Goodwill December 31, 2017

January 2, 2016 purchase:
Cost of 70% interest $ 98,000
Implied fair value of Son ($98,000 / 70%) $140,000
Less: Book value of Son 120,000
Goodwill $ 20,000

June 30, 2017 purchase:

Cost of 20% interest $ 37,000
Implied fair value of Son ($37,000 / 20%) $185,000
Less: Book value of Son 165,000
Goodwill - December 31, 2017 $ 20,000

3. Consolidated net income

Sales $600,000
Cost of sales (400,000)
Expenses (70,000)
Consolidated net income 130,000
Noncontrolling interest share* 6,000
Controlling share of net income $124,000

* Noncontrolling share is 10% for full year plus

20% for ½ year.
Alternative:
Pop’s reported income = Controlling share of net income $124,000

4. Consolidated retained earnings December 31, 2017

Beginning retained earnings $200,000
Add: Controlling share of Consolidated net income — 2017 124,000
Less: Dividends (64,000)
Consolidated retained earnings — ending $260,000
Alternative solution:
Pop’s reported ending retained earnings = Consolidated
 Retained earnings — ending $260,000

5. Noncontrolling interest December 31, 2017

Equity of Son December 31, 2017 $170,000
Goodwill 20,000
Fair value of Son $190,000
Noncontrolling interest percentage 10%
Noncontrolling interest December 31, 2017 $ 19,000