Quiz 1 Solman
Quiz 1 Solman
Quiz 1 Solman
NCI (400,000*20)
Total
FVNAA
Goodwill
No. 1
Assets- P
Assets- S (FV)
Goodwill
Conso Asset
No. 2
OS- P
RE- P
NCI
Conso SHE
Consideration Transferred/ Acq Cost) 430,000.00
NCI (400,000*20) 80,000.00
510,000.00
SHE 350,000.00
Inc in A 50,000.00 400,000.00
110,000.00
1,570,000.00
Assets- S (FV) 800,000.00
110,000.00
Conso Asset 2,480,000.00
1,000,000.00
250,000.00
80,000.00
Conso SHE 1,330,000.00
Sugar Co. Cheese Co.
Cash 392,000.00 316,000.00
Inventory 420,000.00 60,000.00
Investment in subsidiary (at cost) 300,000.00
Equipments, net 560,000.00 120,000.00
Total Assets 1,672,000.00 496,000.00
1. How much is the net change in the fair value of the subsidiary’s net assets since the acquisition date?
2. What amount of goodwill is reported in the December 31, 20x1 consolidated financial statements?
3. What amount of goodwill is attributed to non-controlling interests on December 31, 20x1?
4. How much is the consolidated total assets on December 31, 20x1?
5. How much is the non-controlling interest in the net assets of the subsidiary on December 31, 20x1?
6. How much is the consolidated retained earnings on December 31, 20x1?
7. How much is the consolidated total equity on December 31, 20x1 attributed to the Parent and NCI?
8. How much is the consolidated profit in 20x1?
9. How much is the consolidated profit attributed to the following Parent and NCI?
No. 2
No. 3
Parent NCI
CT 300,000.00 72,000.00
FVNAA 288,000.00 72,000.00
Goodwill 12,000.00 -
No. 4
Parent Subsidiary
Cash 392,000.00 316,000.00
Inventory 420,000.00 60,000.00
Equipment 560,000.00 120,000.00
Goodwill 12,000.00
Consolidated Asset
No. 5.
No. 6
No. 7
Share Capital- P 940,000.00
Consolidated RE 472,000.00
NCI- NAS 80,000.00
Conso SHE 1,492,000.00
No.8
Parent Subsidiary
Profit 600,000.00 80,000.00
FVA - 40,000.00
Consolidated Profit 600,000.00 40,000.00
No. 9
FVA Total
708,000.00
480,000.00
24,000.00 704,000.00
12,000.00
1,904,000.00
Total
680,000.00
- 40,000.00
640,000.00
Total Parent Sub
NI 480,000.00 400,000.00 80,000.00
FVA- INV (inc) - 10,000.00 - 10,000.00 Sold
FVA- Equip (inc) - 16,000.00 - 16,000.00 Depreciation for 5 yrs
CONSO PROFIT 454,000.00 400,000.00 54,000.00
Sales
Inter Co
Conso Sales
COGS
Interco- Sales
RP-BI
UP- EI
CONSO COGS
Sales
Gross Profit
Opex
Ending Inventories
GP GPR Dividend received from affiliate
192,000.00 30% RP-BI 42,000.00 dividend from non-affiliate
168,000.00 35% UP- EI 26,950.00
87,500.00 20% UP- EI 12,600.00 NI
NI
1,134,000.00 224,000.00
70,000.00
1,134,000.00 294,000.00
1,350,335.00
80,115.00
1,430,450.00
US RUL For the Year Prorated
SP 168,000.00 33,600.00 22,400.00
CA 210,000.00 42,000.00 28,000.00
U Gain/Loss - 42,000.00 5 yrs - 8,400.00 - 5,600.00 May to Dec
DS
SP 690,000.00 86,250.00 28,750.00
CA 600,000.00 75,000.00 25,000.00
U Gain 90,000.00 8 yrs 11,250.00 3,750.00 Sep to Dec
CNI-P 826,870.00
NCI-NIS 69,280.00 Carrying Value
DS
SP 690,000.00 8.00 28,750.00
CA 600,000.00 8.00 25,000.00 575,000.00
Gain 90,000.00
Consolidated Asset
Asset- P @ BV x
Asset- S @ FV x
Goodwill x
Conso Asset x
Goodwill
NCI Beg x
Share in NI/ (L) x
Share in Div (x)
NCI-NAS x
Or
NI-P x
Share in NI-S x
Imp of Goodwill if any (x)
CNI- Parent x
CNI- P x
NCI-NIS x
Consolidated Net Income x
Consolidated SHE
OS- Parent x
SP- Parent x
CRE- Parent x
NCI-NAS x
Cons SHE x
Intercompany Transactions
Consolidated Sales
P S Total
Sales x x x
Inter Co (x) (x) (x)
Conso Sales x x x
Notes:
+ EI -COS +Income
-EI +COS -Income
Consolidated Income
Note: the effect of Intercompany transactions dependends if Upstream or Downstream and if Gain or Loss
P S Total
NI x x x
Share in Div- S (x) (x)
DS: RP- Beg Inv x (x)
DS: UP- End Inv (x) x
US: RP- Beg Inv x x
US: UP- End Inv (x) (x)
DS: UG/ UL- Date of Sale only (x)
DS: RG/L x
US: UG/ UL- Date of Sale only (x)
US: RG/L x
Adjusted Net Income x x x
Cost Method
Intially @ Cost
Subsequently: NCA @ Cost unless shares are sold or additional shares are purchased
Div Received - Income
Equity Method
Intially @ Cost
Subsequently: Adjusted to account for the share of the changes subsidiary's Net Asset/Equity (P/L)
Dividends- return of Investment (reduces the value of Investment in Subsidiary)
and if Gain or Loss
/Equity (P/L)