The document discusses the calculation of goodwill from the acquisition of a subsidiary. It calculates the goodwill attributable to the parent and non-controlling interests based on their proportionate ownership of the net assets. It then accounts for any impairment to goodwill over time to arrive at the net goodwill for the current year. It also discusses the elimination of unrealized profit from intercompany inventory transactions for consolidated financial statements.
The document discusses the calculation of goodwill from the acquisition of a subsidiary. It calculates the goodwill attributable to the parent and non-controlling interests based on their proportionate ownership of the net assets. It then accounts for any impairment to goodwill over time to arrive at the net goodwill for the current year. It also discusses the elimination of unrealized profit from intercompany inventory transactions for consolidated financial statements.
The document discusses the calculation of goodwill from the acquisition of a subsidiary. It calculates the goodwill attributable to the parent and non-controlling interests based on their proportionate ownership of the net assets. It then accounts for any impairment to goodwill over time to arrive at the net goodwill for the current year. It also discusses the elimination of unrealized profit from intercompany inventory transactions for consolidated financial statements.
Consideration transferred (cost of investment in sub.
) xx Previously held equity interest in the acquiree - Total xx Less: Paren
he acquiree - Total xx Less: Parent's proportionate share in the net assets of subsidiary (xx x 80%) (xx) Goodwill attrib. to owners of pare Goodwill attrib. to owners of parent - acquisition date xx Less: Parent's Parent's share in goodwill goodwill impairment impairment - Good will impairment impairment - Goodwill attrib. to owners of parent xx Fair value of NCI [(5,000,000 ÷ 80%) x 20%] 1,250,000 Less: NCI's pr %) x 20%] 1,250,000 Less: NCI's proportionate share in net assets of subsidiary (6,000,000 x 20%) (1,200,000) Goodwill attributable to NCI 000) Goodwill attributable to NCI - acquisition date 50,000 Less: NCI's share in goodwill goodwill impairment impairment - Goodwill attrib ment impairment - Goodwill attributable to NCI – current year 50,000 Goodwill, net – current year xx 9. C Solution: Total consolidated c 9. C Solution: Total consolidated current assets before elimination 320,000 Unrealized profit on purchases from Kent (48K x 60/240) (12,0 es from Kent (48K x 60/240) (12,000) Consolidated current assets 308,000 No elimination is made on the transaction with Dean because C e transaction with Dean because Clark does not control Dean, and therefore, Dean is not con