You're trying to save to buy a new $180,000 Ferrari. You have $44,000 today that can be invested at your bank. The bank pays 4.0 percent annual interest on its accounts. How long will it be before you have enough to buy the car?

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1. P Co acquired a controlling interest in Moonstone Co as follows: Interest acquired Date of acquisition 90% I January 20x1 2. At acquisition date, the shareholders' equity of Moonstone Co was as follows: Share capital Retained earnings $1,320,000 550,000 S1.870,000 3. The fair and book values of identifiable net assets of Moonstone Co at date of acquisition were as follows: Book value Fair value S180,000 Sold by Moonstone during 20x1 250,000 Remaining useful life was 5 years 1,750,000 $2,180,000 Remarks Inventory Intangible assets Other net assets S120,000 1,750,000 S1.870,000 4. P Co chose to measure non-controlling interests at fair value on acquisition date. The fair value of non-controlling interests in Moonstone Co as at date of acquisition was $250,000. 5. On 31 December 20x3, P Co estimated that 10% of the original goodwill was impaired. 6. The financial statements of P Co and Moonstone Co for the year ended 31 Dec 20x3 are shown in the Consolidation Worksheet on Page 2. 7. Assume tax rate was 20%. Required (Ignore all tax effects): 1. Prepare the consolidation adjusting entries for the year ended 31 December 20x3. 2. Complete the consolidation worksheet for the year ended 31 December 20x3. 1. P Co acquired a controlling interest in Moonstone Co as follows: Interest acquired Date of acquisition 90% I January 20x1 2. At acquisition date, the shareholders' equity of Moonstone Co was as follows: Share capital Retained earnings $1,320,000 550,000 S1.870,000 3. The fair and book values of identifiable net assets of Moonstone Co at date of acquisition were as follows: Book value Fair value S180,000 Sold by Moonstone during 20x1 250,000 Remaining useful life was 5 years 1,750,000 $2,180,000 Remarks Inventory Intangible assets Other net assets S120,000 1,750,000 S1.870,000 4. P Co chose to measure non-controlling interests at fair value on acquisition date. The fair value of non-controlling interests in Moonstone Co as at date of acquisition was $250,000. 5. On 31 December 20x3, P Co estimated that 10% of the original goodwill was impaired. 6. The financial statements of P Co and Moonstone Co for the year ended 31 Dec 20x3 are shown in the Consolidation Worksheet on Page 2. 7. Assume tax rate was 20%. Required (Ignore all tax effects): 1. Prepare the consolidation adjusting entries for the year ended 31 December 20x3. 2. Complete the consolidation worksheet for the year ended 31 December 20x3.

Answer rating: 100% (QA)

We use the formula A P1r100n where A future value P ... View the full answer