Mampuru Limited and its subsidiary reported consolidated net income of R320 000 000 for the year ended 31 December 2015. Mampuru Limited owns 80% of the ordinary shares of its subsidiary, acquired at book value. Non-controlling interest was assigned net income of R30 000 000 in the consolidated income statement for 2015. What is the amount of separate operating income reported by Mampuru Limited for the year ended 31 December 2015? Select one: O a. R170 000 000 O b. R150 000 000 O G R120 000 000 O d. R200 000 000

Mampuru Limited and its subsidiary reported consolidated net income of R320 000 000 for the year ended 31 December 2015. Mampuru Limited owns 80% of the ordinary shares of its subsidiary, acquired at book value. Non-controlling interest was assigned net income of R30 000 000 in the consolidated income statement for 2015. What is the amount of separate operating income reported by Mampuru Limited for the year ended 31 December 2015? Select one: O a. R170 000 000 O b. R150 000 000 O G R120 000 000 O d. R200 000 000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

H has a 75% owned subsidiary S. During the year ending 31 December 2021 H sold inventory to S for an invoice price of £800,000. S have since sold 75% of that inventory to third parties. The sale was at a mark-up of 25%on cost to H. S is the only subsidiary of H. What is the adjustment to inventory that would be included in the consolidated statement of financial position of H at the year-ending 31 December 2021 resulting from this sale? Show you calculations.
On January 1, 2016, Parent Company purchased for P6,500,000 65% of the outstanding shares of Subsidiary Company. On this date, the assets of Subsidiary Company have a book value P10,000,000 while their liabilities have book values of P2,000,000. All of Subsidiary Company’s assets approximated their book values except for Machinery and Land which were understated by P25,000 and P75,000 each respectively and a Liability which was overstated by P10,000. Parent and Subsidiary each have 100,000 shares outstanding and their shares are currently trading in the stock market at P250 and P125 per share to Parent and Subsidiary each, respectively. The non-controlling interest is valued at fair value. What is the goodwill/income from acquisition of Subsidiary Company?
X ltd owns 75% of Y Ltd. Y Ltd owns 40% of Z ltd. X Ltd also owns 30% of Z Ltd. The ownership interests in Z ltd were acquired when Z ltd was incorporated. The retained earnings of the three companies at 1 July 2016 and 30 June 2017 are as follows: X Ltd $ Y Ltd $ Z Ltd $ Retained earnings at acquisition date 40 000 12 000 8 000 Retained earnings 1 July 2016 50 000 15 000 10 000 Retained earnings 30 June 2017 60 000 20 000 16 000 The dividends paid/declared by group entities for the year ended 30 June 2017 were as follows: X Ltd $ Y Ltd $ Z Ltd $ Interim dividend paid 3,000 600 500 Final dividend declared 3,000 1,000 1000 Additional Information: During the year ended 30 June 2016, Z sold goods to Y Ltd for $200,000. These goods cost Z Ltd $180,000. 10% of these goods remained in Y’s inventory at 30 June 2016. During the year ended 30 June 2016, X sold goods to Z Ltd for $300,000. These goods cost Z Ltd $20,000. 25% of these goods remained in Z’s inventory at 30 June 2016. During the…
Hw.44. The following information relates to Adele Ltd. Since the date of acquisition, Adele Ltd has held interests in multiple subsidiaries totalling DNCI of 25%, and INCI of 15%. The following summarised financial information is provided: Retained earnings at DOA $117,000 Retained earnings at 1/7/2021 $476,000 Current period profit for year ended 30/6/2022 $236,000 Required: a) Based on the financial information you have available, prepare the journal entries to record the allocation to NCI upon consolidation on 30 June, 2022. Your workings and narrations will be awarded marks. (show consolidation journals) b) Briefly explain what effect these journal entries have on the consolidated financial reports.
Company A has a subsidiary, which is accounted for in its separate financial statements using the cost method. At the end of 2016, Company A reports net income of P200,000 in its separate financial statements. 8. Assuming it has no other subsidiaries and other transactions affecting the net income at a consolidated level, compute the net income of Company A at a consolidate level given the following additional information:
Visno
Ashong Plc has two subsidiaries, Yvonne Plc and Wett Plc. It purchased 10,000 shares in Yvonne Plc on 1 January 2015 for GH¢35,000 when the retained earnings of Yvonne Plc stood at GH¢21,000. It purchased 15,000 shares in Wett Plc for GH¢30,000 on 31 December 2015 when the retained earnings of Wett Plc stood at GH¢16,000. The issued share capital (all issued at GHC 1 each ) of the two subsidiaries is as follows:2Yvonne Plc GH¢15,000Wett Plc GH¢20,000By the end of 2018, goodwill impairment losses totaled GH¢4,000.What is the carrying amount of goodwill in the consolidated statement of financial position at 31 December 2018 ?
Archie Co. has a subsidiary, which is accounted for in its separate financial statements using the cost method. At the end of 2016, the company reports net income of $20,000 in its separate financial statements. Increase in fair value of investment $12,000 Share in net income of subsidiary $4,000 Cash dividends paid by subsidiary and received by the company $3,500 Assuming it has no other subsidiaries and other transactions affecting the net income at a consolidated level, compute the net income of the company at a consolidate level.
On 1/1/2022, P Co acquired 90% of S Co stock at an amount equal to its book value.Selected balance sheet data at 1/1/ 2022, are as follows: P CO S Co Total Assets 180,000 Liabilities 60,000 Common Stock 50,000 Select one: Retained Earnings 200,000 70,000 O 420,000 In the 1/1/2022, consolidated balance sheet, what amount should be reported as non-controlling interest in net assets? a. 12,000 b. 10,500 120,000 c. 0 d. 30,000 100,000
02) On 30 June 2010 Parent owns 80% of the share capital of Subsidiary. The non-controlling interest had a fair value of $1,300,000. Extract from the statements of financial position of Subsidiary at 30 June 2014 are shown below: Statement of financial position: Ordinary share Share premium Retained earnings Select one: O a. $1,220,000 O b. $1,300,000 O c. $1,480,000 O d. $1,400,000 30 June 2010 $ 1,000,000 400,000 4,700,000 Select one: O a. $225,000 O b. $228,800 O c. $223,400 O d. $255,300 What figure for non-controlling appear in the consolidated statement of financial position as at 30 June 20X6 11) On January 1, 2012 Peter Inc. acquired 80% of the outstanding common stock of Sam Co. for $540,000. Sam's net assets had a book value $600,000 on that date although equipment with a ten-year life having a book value of $10,000 had a fair market value of $30,000. Any remaining allocation is to go to goodwill. On December 31, 2012, Sam reports revenues of $125,000 and expenses of $50,000…
On January 1, 2016, Parent Company purchased for P6,500,000 65% of the outstanding shares of Subsidiary Company. On this date, the assets of Subsidiary Company have a book value P10,000,000 while their liabilities have book values of P2,000,000. All of Subsidiary Company’s assets approximated their fair values except for Machinery and Land which were understated by P25,000 and P75,000 each respectively and a Liability which was overstated by P10,000. Parent and Subsidiary each have 100,000 shares outstanding and their shares are currently trading in the stock market at P250 and P125 per share to Parent and Subsidiary each, respectively. The non-controlling interest is valued at fair value. What is the the increase in the total assets of Parent because of the acquisition?
For the year ended December 31, the following results were given: Dividend Paid Net Income Parent Company P15,000 P30,200Subsidiary Company 4,000 9,400 Using the proportionate basis or partial goodwill method, compute the non-controlling interest on December 31.A. P 0 C. P 610B. P 540 D. P 940 Note: Just use the information provided to arrive at the answer.