Question

Qorp Ltd. has the following SFP at December 31, 20X5.
Qorp Ltd.
Statement of Financial Position
December 31, 20X5


On January 1, 20X6, Zip Ltd., whose assets are composed entirely of share investments and cash, paid $ 185,000 for 70% of the outstanding shares of Qorp Ltd. The current fair values of the net assets of Qorp Ltd. on January 1, 20X6, were:


Zip Ltd. had the following shareholders’ equity on January 1, 20X6:



Required:
a. Assume a consolidated SFP is prepared on January 1, 20X6. Calculate the dollar amounts for the following items as they would appear on that consolidated SFP under the entity method:
1) Goodwill
2) Land
3) Equipment
4) Common shares
5) Retained earnings
6) NCI
b. What does NCI represent on the consolidatedSFP?


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  • CreatedMarch 13, 2015
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