Smallport

Statement of Profit or Loss

For the year end December 31
Revenue 500
Expenses (380)
Net income 120
Retained Earnings Statement
Retained Earnings-Jan. 1 370
Add: Net income 120
Deduct: Dividends (10)
Retained Earnings -December 31 480

Smallport
Statement of Financial Position
For the year end December 31
(in millions)
Book value Fair value
Property, Plant & Equipment (net) 400 350 (50)
Software 100 - (100)
Current assets 300 300 -
Total assets 800 650 (150) (45)
Share capital – Ordinary 100
Share premium 20
Retained earnings 480
Liabilities 200 200 -
Total Equity & Liabilities 800

Book value Fair value

Net assets 600 450
Percentage acquired 30% 30%
Book value of the interest acquired 180
Consideration transferred 135

Investment in Smallport 150 1/1/2021

Book value of the interest acquired 180
Total excess of cost over book value acquired (30) 31/12/2021
Assignment to Identifiable Assets & Liabilities
Property, Plant & Equipment (15)
Software (30) (45)
Assignment to Goodwill 15

Cost assigned Remaining usAnnual Amortization

Equipment (15) 4 (3.75)
Software (30) 3 (10)
Total (13.75)

1-Jan-20 1-Jan-21
Share capital – Ordinary 5,000 5,000
Retained earnings 2,000 2,500
Total Stockholders' Equity 7,000 7,500
Investment in Smallport 150
Cash 150
Investment in Smallport 36
Investment income from Smallport 36
Investment income from Smallport (13.75)
Investment in Smallport (13.75)
Dividend receivable 10
Investment in Smallport 10

Investment in Smallport 189.75

Investment income from Smallport 49.75
Moon Co. acquires all of the voting ordinary shares of Sun Co. on
January 1, 2023 for $250,000 in cash. Additionally, Moon issues
20,000 shares $10 par value to exchage for the interest of Sun, at fair
value $50/share. According to a valuation company, office bulidings,
patent, trademarks and liabilities of Sun Co. is presented under their
fair value $30,000, $130,000, $20,000 and $30,000 respectively.
However, the book value of equipment is higher than fair value
$30,000.
Sun Company
Statement of Financial Position
For the year end December 31, 2022

(in thousands)
Office bulidings 280
Equipment (net)(5-year remaining lif 180
Patent (10-year remaining life) 320
Trademarks (indefinite life) 200
Current assets 300
Total assets 1,280
Share capital – Ordinary 400
Share premium 180
Retained earnings 480
Liabilities 220
Total Equity & Liabilities 1,280

The book value and the appraised fair value of Sun's accounts as follow:

Book value Fair value Difference

Office bulidings (15-year remaining l 280 310 30
Equipment (net)(5-year remaining lif 180 150 (30)
Patent (10-year remaining life) 320 450 130
Trademarks (indefinite life) 200 220 20
Current assets 300 300 0
Liabilities (220) (220) 0
Net assets 1,060 1,210 150
Share capital – Ordinary (400)
Share premium (180)
Retained earnings (480)
Stockholders' Equity (1,060)
(in thousands)
Investment in Sun $ 1,250 1/1/2023
Book value of the interest acquired 1,060
Total excess of cost over book value acquired 190
Assignment to Identifiable Assets & Liabilities
Office bulidings $ 30 10//15/2023
Equipment (30)
Patents 130 10/30/2023
Trademarks 20 150
Assignment to Goodwill $ 40 12/31/2023
(in thousands)
Cost assigneRemaining uAnnual Amortization
Office bulidings (15-year remaining l $ 30 15 $ 2.00
Equipment (net)(5-year remaining lif (30) 5 (6.00)
Patent (10-year remaining life) 130 10 13.00
Trademarks (indefinite life) 20 indefinite
Goodwill 40 indefinite
$ 9.00

Moon Corporation and Sun Company

Financial Statements
for the year end December 31, 2023
(in thousands)

Moon Sun
Statement of Profit or Loss
Revenues $1,750.0 $530.0
Cost of goods sold (750.0) (300.0)
Depreciation expense (80.0) (39.7)
Amortization expense (100.0) (32.0)
Income from Sun 149.3 -
Net income 969.3 158.3
Retained Earnings Statement
Retained Earnings-1/1/2023 650.0 480.0
Add: Net income 969.3 158.3
Deduct: Dividends (60.0) (30.0)
Retained Earnings -December 31 1,559.3 608.3
Statement of Financial Position
Office bulidings(net) 600.0 261.3
Equipments (net) 550.0 220.0
Patents 120.0 288.0
Trademarks 600.0 200.0
Investment in Sun 1,369.3 -
Current assets 1,020.0 400.0
Total assets 4,259.3 1,369.3
Share capital – Ordinary 700.0 400.0
Share premium 1,400.0 180.0
Retained earnings 1,559.3 608.3
Liabilities 600.0 181.0
Total Liabilities & Equity 4,259.3 1,369.3
 Moon corporation and Subsidiary consolidation workpaper
end December 31, 2023
(in thousands)

Adjustments and eliminations

Moon Sun Debit Credit
Statement of Profit or Loss
Revenues 1,750.0 530.0
Cost of goods sold (750.0) (300.0)
Depreciation expense (80.0) (39.7) 4.0
Amortization expense (100.0) (32.0) E 13.0
Income from Sun 149.3 - I 149.3
Net income 969.3 158.3
Retained Earnings Statement
Retained Earnings-1/1/2023 650.0 480.0 S 480.0
Add: Net income 969.3 158.3
Deduct: Dividends (60.0) (30.0) 30.0
Retained Earnings -December 31 1,559.3 608.3
Statement of Financial Position
Office bulidings(net) 600.0 261.3 A 30.0 2.0
Equipments (net) 550.0 220.0 E 6.0 30.0
Patents 120.0 288.0 A 130.0 13.0
Trademarks 600.0 200.0 A 20.0
Goodwill - - A 40.0
Investment in Sun 1,369.3 - 1,060.0
190.0
149.3
D 30.0
Current assets 1,020.0 400.0
Total assets 4,259.3 1,369.3
Share capital – Ordinary 700.0 400.0 S 400.0
Share premium 1,400.0 180.0 S 180.0
Retained earnings 1,559.3 608.3
Liabilities 600.0 181.0
Total Liabilities & Equity 4,259.3 1,369.3 1,478.3 1,478.3

Moon corporation and Subsidiary consolidation workpaper

end December 31, 2023
(in thousands)
Adjustments and eliminations
Moon Sun Debit Credit
Statement of Profit or Loss
Revenues 1,750.0 530.0
Cost of goods sold (750.0) (300.0)
Depreciation expense (80.0) (39.7) 4.0
Amortization expense (100.0) (32.0) E 13.0
Dividend income 30.0 - I 30.0
Net income 850.0 158.3
Retained Earnings Statement
Retained Earnings-1/1/2023 650.0 480.0 S 480.0
Add: Net income 850.0 158.3
Deduct: Dividends (60.0) (30.0) 30.0
Retained Earnings -December 31 1,440.0 608.3
Statement of Financial Position
Office bulidings(net) 600.0 261.3 A 30.0 2.0
Equipments (net) 550.0 220.0 E 6.0 30.0
Patents 120.0 288.0 A 130.0 13.0
Trademarks 600.0 200.0 A 20.0
Goodwill - - A 40.0
Investment in Sun 1,250.0 - 1,060.0
190.0
Current assets 1,020.0 400.0
Total assets 4,140.0 1,369.3
Share capital – Ordinary 700.0 400.0 S 400.0
Share premium 1,400.0 180.0 S 180.0
Retained earnings 1,440.0 608.3
Liabilities 600.0 181.0
Total Liabilities & Equity 4,140.0 1,369.3 1,329.0 1,329.0
-

Moon corporation and Subsidiary consolidation workpaper

year end December 31, 2023
(in thousands)
Partial Equity method Adjustments and eliminations
Moon Sun Debit Credit
Statement of Profit or Loss
Revenues 1,750.0 530.0
Cost of goods sold (750.0) (300.0)
Depreciation expense (80.0) (39.7) 4.0
Amortization expense (100.0) (32.0) E 13.0
Income from Sun 158.3 - I 158.3
Net income 978.3 158.3
Retained Earnings Statement
Retained Earnings-1/1/2023 650.0 480.0 S 480.0
Add: Net income 978.3 158.3
Deduct: Dividends (60.0) (30.0) 30.0
Retained Earnings -December 31 1,568.3 608.3
Statement of Financial Position
Office bulidings(net) 600.0 261.3 A 30.0 2.0
Equipments (net) 550.0 220.0 E 6.0 30.0
Patents 120.0 288.0 A 130.0 13.0
Trademarks 600.0 200.0 A 20.0
Goodwill - - A 40.0
Investment in Sun 1,378.3 - 1,060.0
190.0
158.3
D 30.0
Current assets 1,020.0 400.0
Total assets 4,268.3 1,369.3
Share capital – Ordinary 700.0 400.0 S 400.0
Share premium 1,400.0 180.0 S 180.0
Retained earnings 1,568.3 608.3
Liabilities 600.0 181.0
Total Liabilities & Equity 4,268.3 1,369.3 1,487.3 1,487.3
Records at Moon Equity method
Investment in Sun 1,250
Cash 250
Share capital – Ordinary 200
Share premium 800
Dividend receivable 30.0
Investment in Sun 30.0
Cash 30.0
Dividend receivable 30.0
Investment in Sun 158.3
Investment income from Sun 158.3
Investment income from Sun 9.0
Investment in Sun 9.0
Investment income from Sun 149.30
Investment in Sun 1,369.30

Consolidation Entry S
Share capital – Ordinary (Sun Co. - 1 400.0
Share premium (Sun Co. - 1/1/2023) 180.0
Retained earnings (Sun Co. - 1/1/20 480.0
Investment in Sun 1,060
Consolidation Entry A
Office bulidings 30.0
Patents 130.0
Trademarks 20.0
Goodwill 40.0
Equipment 30
Investment in Sun 190
Consolidation Entry I
Investment income from Sun 149.3
Investment in Sun 149.3
Consolidation Entry D
Investment in Sun 30.0
Dividend declared 30.0
Consolidation Entry E
Equipments 6.0
Office buildings 2.00
Depreciation expense 4.00
Amortization expense 13.0
Patents 13.00
 for the year
2023
(in thousands)

Consolidated
stments and eliminations
Statements
Credit

2,280.0
(1,050.0)
E (115.7)
(145.0)
-
969.3

650.0
969.3
D (60.0)
1,559.3

E 889.3
A 746.0
E 525.0
820.0
40.0
S (0.0)
A
I

1,420.0
4,440.3
700.0
1,400.0
1,559.3
781.0
4,440.3

for the year

2023
(in thousands)
stments and eliminations Consolidated
Credit Statements

2,280.0
(1,050.0)
 E (115.7)
(145.0)
-
969.3

650.0
969.3
I (60.0)
1,559.3

E 889.3
A 746.0
E 525.0
820.0
40.0
S
-
A
1,420.0
4,440.3
700.0
1,400.0
1,559.3
781.0
4,440.3

for the
1, 2023
(in thousands)
stments and eliminations Consolidated
Credit Statements

2,280.0
(1,050.0)
E (115.7)
(145.0)
-
969.3

650.0
969.3
D (60.0)
1,559.3

E 889.3
A 746.0
E 525.0
820.0
40.0
S
A
0.0
I

1,420.0
4,440.3
700.0
1,400.0
1,559.3
781.0
4,440.3
Moon Co. acquires 80% of the voting ordinary shares of Sun Co. on January 1, 2023 by issuing 20,000 shares $10 par value to
Sun, at fair value $50/share. According to a valuation company, office bulidings, patent, trademarks and liabilities of Sun Co. is
value $30,000, $130,000, $20,000 and $30,000 respectively. However, the book value of equipment is higher than fair value $3
fair value of NCI is not available.

Sun Company
Statement of Financial Position
For the year end December 31, 2022

(in thousands)
Office bulidings 280
Equipment (net)(5-year remaining life) 180
Patent (10-year remaining life) 320
Trademarks (indefinite life) 200
Current assets 300
Total assets 1,280
Share capital – Ordinary 400
Share premium 180
Retained earnings 480
Liabilities 220
Total Equity & Liabilities 1,280

The book value and the appraised fair value of Sun's accounts as follow:

Book value Fair value Difference

Office bulidings (15-year remaining life) 280 310 30
Equipment (net)(5-year remaining life) 180 150 (30)
Patent (10-year remaining life) 320 450 130
Trademarks (indefinite life) 200 220 20
Current assets 300 300 0
Liabilities (220) (220) 0
Net assets 1,060 1,210 150
Share capital – Ordinary (400)
Share premium (180)
Retained earnings (480)
Stockholders' Equity (1,060)
(in thousands)
Consideration transferred (cost) 1,000
Non-controlling interest (NCI) 242
Total 1,242
Net assets at FV 1,210
GW 32 10//15/2023
 (in thousands)
Cost assigned Remaining useful life Annual Amortization
Office bulidings (15-year remaining life) $ 30 15 $ 2.00
Equipment (net)(5-year remaining life) (30) 5 (6.00)
Patent (10-year remaining life) 130 10 13.00
Trademarks (indefinite life) 20 indefinite
Goodwill 32 indefinite
$ 9.00

Moon Corporation and Sun Company

Financial Statements
for the year end December 31, 2023
(in thousands)

Moon Sun
Statement of Profit or Loss
Revenues $1,750.0 $530.0
Cost of goods sold (750.0) (300.0)
Depreciation expense (80.0) (39.7)
Amortization expense (100.0) (32.0)
Income from Sun 119.4 -
Net income 939.4 158.3
Retained Earnings Statement
Retained Earnings-1/1/2023 650.0 480.0
Add: Net income 939.4 158.3
Deduct: Dividends (60.0) (30.0)
Retained Earnings -December 31 1,529.4 608.3
Statement of Financial Position
Office bulidings(net) 600.0 261.3
Equipments (net) 550.0 220.0
Patents 120.0 288.0
Trademarks 600.0 200.0
Investment in Sun 1,095.4 -
Current assets 1,264.0 400.0
Total assets 4,229.4 1,369.3
Share capital – Ordinary 700.0 400.0
Share premium 1,400.0 180.0
Retained earnings 1,529.4 608.3
Liabilities 600.0 181.0
Total Liabilities & Equity 4,229.4 1,369.3
Moon corporation and Subsidiary consolidation workpaper
31, 2023

Adjustments and elimin

Moon Sun Debit
Statement of Profit or Loss
Revenues $ 1,750.0 $ 530.0
Cost of goods sold (750.0) (300.0)
Depreciation expense (80.0) (39.7)
Amortization expense (100.0) (32.0) E 13.0
Income from Sun 119.4 - I 119.4
Net income 939.4 158.3
Non-controlling interest share
Controlling interest share
Retained Earnings Statement
Retained Earnings-1/1/2023 650.0 480.0 S 480.0
Add: Net income 939.4 158.3
Deduct: Dividends (60.0) (30.0)
Retained Earnings -December 31 1,529.4 608.3
Statement of Financial Position
Office bulidings(net) 600.0 261.3 A 30.0
Equipments (net) 550.0 220.0 E 6.0
Patents 120.0 288.0 A 130.0
Trademarks 600.0 200.0 A 20.0
Goodwill - - A 32.0
Investment in Sun 1,095.4 -

D 24.0
Current assets 1,264.0 400.0
Total assets 4,229.4 1,369.3
Share capital – Ordinary 700.0 400.0 S 400.0
Share premium 1,400.0 180.0 S 180.0
Retained earnings 1,529.4 608.3
Non-controlling interest (1/1/2023)

Non-controlling interest (31/12/2023)

Liabilities 600.0 181.0
Total Liabilities & Equity 4,229.4 1,369.3 1,434.4

Moon corporation and Subsidiary consolidation workpaper

31, 2023
Initial Value method
 Adjustments and elimin
Moon Sun Debit
Statement of Profit or Loss
Revenues 1,750.0 530.0
Cost of goods sold (750.0) (300.0)
Depreciation expense (80.0) (39.7)
Amortization expense (100.0) (32.0) E 13.0
Dividend income 24.0 - I 24.0
Net income 844.0 158.3
Non-controlling interest share
Controlling interest share
Retained Earnings Statement
Retained Earnings-1/1/2023 650.0 480.0 S 480.0
Add: Net income 844.0 158.3
Deduct: Dividends (60.0) (30.0)
Retained Earnings -December 31 1,434.0 608.3
Statement of Financial Position
Office bulidings(net) 600.0 261.3 A 30.0
Equipments (net) 550.0 220.0 E 6.0
Patents 120.0 288.0 A 130.0
Trademarks 600.0 200.0 A 20.0
Goodwill - - A 32.0
Investment in Sun 1,000.0 -

Current assets 1,264.0 400.0

Total assets 4,134.0 1,369.3
Share capital – Ordinary 700.0 400.0 S 400.0
Share premium 1,400.0 180.0 S 180.0
Retained earnings 1,434.0 608.3
Non-controlling interest (1/1/2023)

Non-controlling interest (31/12/2023)

Liabilities 600.0 181.0
Total Liabilities & Equity 4,134.0 1,369.3 1,315.0

Moon corporation and Subsidiary consolidation workpaper

December 31, 2023

Partial Equity method Adjustments and elimin

Moon Sun Debit
Statement of Profit or Loss
Revenues 1,750.0 530.0
Cost of goods sold (750.0) (300.0)
Depreciation expense (80.0) (39.7)
Amortization expense (100.0) (32.0) E 13.0
Income from Sun 126.6 - I 126.6
Net income 946.6 158.3
Non-controlling interest share
Controlling interest share
Retained Earnings Statement
Retained Earnings-1/1/2023 650.0 480.0 S 480.0
Add: Net income 946.6 158.3
Deduct: Dividends (60.0) (30.0)
Retained Earnings -December 31 1,536.6 608.3
Statement of Financial Position
Office bulidings(net) 600.0 261.3 A 30.0
Equipments (net) 550.0 220.0 E 6.0
Patents 120.0 288.0 A 130.0
Trademarks 600.0 200.0 A 20.0
Goodwill - - A 32.0
Investment in Sun 1,102.6 -

D 24.0
Current assets 1,264.0 400.0
Total assets 4,236.6 1,369.3
Share capital – Ordinary 700.0 400.0 S 400.0
Share premium 1,400.0 180.0 S 180.0
Retained earnings 1,536.6 608.3
Non-controlling interest (1/1/2023)

Non-controlling interest (31/12/2023)

Liabilities 600.0 181.0
Total Liabilities & Equity 4,236.6 1,369.3 1,441.6
ng 20,000 shares $10 par value to exchage for the interest of
emarks and liabilities of Sun Co. is presented under their fair
ipment is higher than fair value $30,000. The information of

Records at Moon Equity method

1/1/2023 Investment in Sun 1,000

Share capital – Ordinary 200

Share premium 800
10//15/2023 Dividend receivable 24.0
Investment in Sun 24.0
10/30/2023 Cash 24.0
Dividend receivable 24.0
12/31/2023 Investment in Sun 126.6
Investment income from Sun 126.6
Investment income from Sun 7.2
Investment in Sun 7.2
Parent Investment income from Sun 119.44
Investment in Sun 1,095.44
NCI Investment income from Sun 29.86
Investment in Sun 265.86

Consolidation Entry S
Share capital – Ordinary (Sun Co. - 1/ 400.0
Share premium (Sun Co. - 1/1/2023) 180.0
Retained earnings (Sun Co. - 1/1/202 480.0
Investment in Sun (80%) 848.0
NCI (20%)-1/1/2023 212.0
Consolidation Entry A
Office bulidings (15-year remaining li 30.0
Patent (10-year remaining life) 130.0
Trademarks (indefinite life) 20.0
Goodwill 32.0
Equipment 30.0
Investment in Sun (80%) 152.0
NCI (20%)-1/1/2023 30.0

Consolidation Entry I
Investment income from Sun 119.4
Investment in Sun 119.4
Consolidation Entry D
Investment in Sun 24.0
Dividend declared 24.0
Consolidation Entry E
Equipment (net)(5-year remaining life 6.0
Office bulidings (15-year remaining life) 2.00
Depreciation expense 4.00
Amortization expense 13.0
Patent (10-year remaining life) 13.00
 for the year end December

(in thousands)

Consolidated
Adjustments and eliminations NCI
Statements
Credit

$ 2,280.0
(1,050.0)
4.0 E (115.7)
(145.0)
-
969.3
29.9 29.9
939.4

650.0
939.4
24.0 D (6.0) (60.0)
1,529.4

2.0 E 889.3
30.0 A 746.0
13.0 E 525.0
820.0
32.0
848.0 S 0.0
152.0 A
119.4 I

1,664.0
4,676.3
700.0
1,400.0
1,529.4
212.0 S 242.0
30.0 A
265.9 265.9
781.0
1,434.4 4,676.3

for the year end December

(in thousands)
 Adjustments and eliminations Consolidated
NCI
Credit Statements

2,280.0
(1,050.0)
4.0 E (115.7)
(145.0)
-
969.3
6.0 6.0
963.3

650.0
963.3
24.0 I (6.0) (60.0)
1,553.3

2.0 E 889.3
30.0 A 746.0
13.0 E 525.0
820.0
32.0
848.0 S
-
152.0 A
1,664.0
4,676.3
700.0
1,400.0
1,553.3
212.0 S
30.0 A 242.0
242.0 242.0
781.0
1,315.0 4,676.3

for the year end

2023
(in thousands)
Adjustments and eliminations Consolidated
NCI
Credit Statements

2,280.0
(1,050.0)
4.0 E (115.7)
 (145.0)
-
969.3
31.7 31.7
937.6

650.0
937.6
24.0 D (6.0) (60.0)
1,527.6

2.0 E 889.3
30.0 A 746.0
13.0 E 525.0
820.0
32.0
848.0 S
152.0 A
0.0
126.6 I

1,664.0
4,676.3
700.0
1,400.0
1,527.6
212.0 S
30.0 A 242.0
267.7 267.7
781.0
1,441.6 4,676.3
 Records at Moon Initial value method
1/1/2023 Investment in Sun 1,000

Share capital – Ordinary 200

Share premium 800

10/30/2023 Cash 24.0

Dividend receivable 24.0

Parent Investment income from Sun 24.00

Investment in Sun 1,000.00
NCI Investment income from Sun 6.00
Investment in Sun 242.00

Records at Moon Partial value method

1/1/2023 Investment in Sun 1,000
 Share capital – Ordinary 200
Share premium 800
10//15/2023 Dividend receivable 24.0

Investment in Sun 24.0

10/30/2023 Cash 24.0
Dividend receivable 24.0
12/31/2023 Investment in Sun 126.6
Investment income from Sun 126.6

Parent Investment income from Sun 126.64

Investment in Sun 1,102.64
NCI Investment income from Sun 31.66
Investment in Sun 267.66
 Statement of Profit or Loss
Revenues 2280
Cost of goods sold -1050
Depreciation expense -115.7
Amortization expense -145
Dividend income 0
Net income 969.3
Non-controlling interest share 29.86
Controlling interest share 939.44

Retained Earnings Statement

Retained Earnings-1/1/2023 650
Add: Net income 939.44
Deduct: Dividends -60
Retained Earnings -December 31 1529.44

Statement of Financial Position

Office bulidings(net) 889.333333
Equipments (net) 746
Patents 525
Trademarks 820
Goodwill 32
Current assets 1664
Total assets 4676.33333
Share capital – Ordinary 700
Share premium 1400
Retained earnings 1529.44
Non-controlling interest (31/12/2023 265.86
Liabilities 781
Total Liabilities & Equity 4676.3