Argentina owns an 80% share of Messi which it purchased 6 months ago. The information below...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Argentina owns an 80% share of Messi which it purchased 6 months ago. The information below relates to Messi at the date of acquisition. The income statements for both are: Revenue Cost of Sales Gross Profit Operating Costs Finance Costs Profit Before Tax Tax Profit for the year Argentina 8000 -4000 4000 -1500 -1000 1500 -700 800 Messi 3000 -1000 2000 -1500 -200 300 -100 200 Other information I. Argentina sold goods to Messi after the acquisition at a margin of 40% and worth $100m. Half of these goods have been sold on by Messi by the year end. II. The fair value of Messi's net assets were equal to their book value at the date of acquisition, with the exception of some machinery which had a fair value of 200 above it's book value. Produce a consolidated Income Statement for the Argentina group. Argentina owns an 80% share of Messi which it purchased 6 months ago. The information below relates to Messi at the date of acquisition. The income statements for both are: Revenue Cost of Sales Gross Profit Operating Costs Finance Costs Profit Before Tax Tax Profit for the year Argentina 8000 -4000 4000 -1500 -1000 1500 -700 800 Messi 3000 -1000 2000 -1500 -200 300 -100 200 Other information I. Argentina sold goods to Messi after the acquisition at a margin of 40% and worth $100m. Half of these goods have been sold on by Messi by the year end. II. The fair value of Messi's net assets were equal to their book value at the date of acquisition, with the exception of some machinery which had a fair value of 200 above it's book value. Produce a consolidated Income Statement for the Argentina group.
Expert Answer:
Answer rating: 100% (QA)
The consolidated income statement for the Argentina group woul... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-1118385388
2nd edition
Authors: Ramji Balakrishnan, Konduru Sivaramakrishnan, Geoff B. Sprinkle
Posted Date:
Students also viewed these accounting questions
-
The Shire of Fabricated is a local government area in the Hunter Valley region of NSW in Australia. As part of its sustainability strategy, it is looking to reduce the greenhouse gas emissions from...
-
gravity model is proposed to generate a 3x3 trip distribution matrix. The expected total trip productions are 0 = 250, 02 = 1 where cij is A doube-constrained 415, and 03 = 395, and the expected trip...
-
For January through March 2020, prepare journal entries to record each of the above transactions for Computer Solutions and then post to the general ledger. Using the 2019 Worksheet as a guide create...
-
Selected data on merchandise inventory, purchases, and sales for Jaffe Co. and Coronado Co. are as follows: Instructions 1. Determine the estimated cost of the merchandise inventory of Jaffe Co. on...
-
What is the minimum transportation cost comparing the Albuquerque option to the Dallas option?
-
Benjamin's Warehouse signed a six-year capital lease on January 1, 2012, with payments due every December 31. Interest is calculated annually at 10%, and the present value of the minimum lease...
-
Name some sources of industrial vibration.
-
Selk Steel Co., which began operations on January 4, 2013, had the following subsequent transactions and events in its long- term investments. 2013 Jan. 5 Selk purchased 60,000 shares (20% of total)...
-
The purpose of one-way ANOVA is to compare multiple means from the variations of the mean. The null hypothesis is Ho = 2 = = k and alternate is HA i Hj. We have the sample data in the table: Y1 Y2...
-
Andrea is in charge of scheduling the work for the service department of a car dealership. Lately, people in the sales department have been taking telephone calls from customers and promising that...
-
Solve the equation 10-2+x=4. The only solution is a
-
Describe your feelings about past and current family relations include childhood and martial issues
-
As a warden, how would you deal with sexual victimization within your facility? What do you think are the most effective techniques to reduce prison violence? How would you implement such techniques?
-
Describe an operating plan of a hospital that you want to start. Pease give all the necessary details.
-
Seizure Taking possession of the debtor's assets and selling the same if the debtor doesn't act. Grabbing the debtor's car, furniture Garnishment Intercepting payables before they come into the...
-
Austin sues ITC Classmate for his injuries. He claims past and future lost wages, medical expenses, and emotional pain and suffering. ITC Classmate and Austin agree to settle Austin's claims prior to...
-
EXPONENTS AND POLYNOMIALS Multiplying binomials with negative coel Multiply. (-5x+6)(-3x+4) Simplify,
-
What is an access control list?
-
Kat works for a consulting company in Houston. She needs to schedule a two-day visit to Chicago to meet a client. As a close friend of hers resides in Detroit, Kat plans to combine a weekend visit to...
-
Ajay Singh's gift-wrapping service charges $3 for each package wrapped. Ajay estimates that his variable costs will total $1 per package wrapped and that his fixed costs will total $600 for the...
-
Kai Kalani owns a company that manufactures and sells fishing rods. Kai's latest creation is the Bass-O-Matic, a graphite fishing rod designed with a trigger-stick Portuguese cork handle and Kai's...
-
Water is to be used to absorb acetone from a dilute mixture with air in a tower packed with 3.5-in. metal Pall rings. Average conditions in the tower are: \[\text { Temperature }=25^{\circ}...
-
Propane gas at \(300 \mathrm{psia}\) and \(150^{\circ} \mathrm{F}\) is sent to an expansion turbine with an efficiency of \(80 \%\). What is the lowest outlet pressure that can be achieved without...
-
Liquid oxygen is stored in a tank at \(-298^{\circ} \mathrm{F}\) and 35 psia. It is to be pumped at \(100 \mathrm{lb} / \mathrm{s}\) to a pressure of \(300 \mathrm{psia}\). The liquid oxygen level in...
Study smarter with the SolutionInn App