The summarised statements of profit or loss of Bing and Crosby, for the year ended 31...

 

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The summarised statements of profit or loss of Bing and Crosby, for the year ended 31 October 2021, are provided below. Bing acquired 3,600,000 ordinary shares in Crosby for $5,250,000 on 1 November 2020 when the retained earnings of Crosby were $300,000. On the same date, Bing also acquired 40% of Crosby's loan notes of $400,000. Statements of profit or loss for the year ended 31 October 2021 Bingo Crosby Revenue Cost of sales Gross profit Distribution costs Administrative expenses Finance costs Income from Crosby: Loan note interest Dividends Profit before tax Income tax expense 5000 5000 9,600 3,900 (5.550) (2.175) 4,050 1,725 (1.050) (480) (1,650) (735) (25) 10 150 1.510 485 (600) (120) Profit for the year The following information is also available: (10) Crosby's total share capital consists of 6,000,000 ordinary shares of $1 each. 910 365 an) It is group policy to value the non-controlling interest at fair value. The fair value of the noncontrolling interest at the acquisition date was $3,200,000. (12) During the year ended 31 October 2021, Bing sold goods costing $200,000 to Crosby for $300,000. At 31 October 2021, 50% of these goods remained in Crosby's inventory. Required: Prepare the consolidated statement of profit or loss for Bing for the year ended 31 October 2021. The summarised statements of profit or loss of Bing and Crosby, for the year ended 31 October 2021, are provided below. Bing acquired 3,600,000 ordinary shares in Crosby for $5,250,000 on 1 November 2020 when the retained earnings of Crosby were $300,000. On the same date, Bing also acquired 40% of Crosby's loan notes of $400,000. Statements of profit or loss for the year ended 31 October 2021 Bingo Crosby Revenue Cost of sales Gross profit Distribution costs Administrative expenses Finance costs Income from Crosby: Loan note interest Dividends Profit before tax Income tax expense 5000 5000 9,600 3,900 (5.550) (2.175) 4,050 1,725 (1.050) (480) (1,650) (735) (25) 10 150 1.510 485 (600) (120) Profit for the year The following information is also available: (10) Crosby's total share capital consists of 6,000,000 ordinary shares of $1 each. 910 365 an) It is group policy to value the non-controlling interest at fair value. The fair value of the noncontrolling interest at the acquisition date was $3,200,000. (12) During the year ended 31 October 2021, Bing sold goods costing $200,000 to Crosby for $300,000. At 31 October 2021, 50% of these goods remained in Crosby's inventory. Required: Prepare the consolidated statement of profit or loss for Bing for the year ended 31 October 2021.

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