Gromit plc purchased 80% of the ordinary share capital of Jamboree plc for a price of £1,300,000 on 31 December 20X0. The separate statements of financial position of the two entities at acquisition date are given below: Statements of financial position at 31 December 20X0 Amounts in £ Gromit plc Jamboree plc Assets: Cash 200,000 120,000 Inventories 500,000 230,000 Shares in Jamboree plc (at cost) 1,300,000 - Properties 2,200,000 850,000 Total Assets 4,200,000 1,200,000 Liabilities: Payables 250,000 300,000 Shareholders’ Equity: Share Capital 50,000 100,000 Retained Earnings 3,900,000 800,000 Total Liabilities and Equity 4,200,000 1,200,000 At the date of acquisition, the fair value of Jamboree plc’s inventories was £290,000, the fair value of Jamboree plc’s properties was £890,000 and the fair value of the non-controlling interest was £220,000. Using the share of acquiree’s net assets method to account for the non-controlling interest in Jamboree plc, 

calculate the total shareholders’ equity reported on Gromit plc’s consolidated statement of financial position at 31 December 20X0.

Answer rating: 100% (QA)

To calculate the total shareholders equity reported on Gromit plcs consolidated statement of financi... View the full answer