On 1 June 2017 Kannex bought 60% of Synergy paying $76,000 cash. The summarised Statements of...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On 1 June 2017 Kannex bought 60% of Synergy paying $76,000 cash. The summarised Statements of Financial Position for the two companies as at 30 November 2017 are: Non-current assets Investments Kannex Synergy $ $ 138,000 115,000 98,000 Current assets Inventories 15,000 17,000 Receivables 19,000 20,000 Cash at bank 2,000 272,000 152,000 Ordinary share 50,000 40,000 Retained earnings 189,000 69,000 239,000 109,000 Current liabilities 33,000 43,000 272,000 152,000 Additional information: The following information is relevant: i) On the date of acquisition of Synergy the; - retained earning of Synergy was $5,250 - the fair value of the non-current assets (machine) of Synergy was $10,000 in excess of its carrying value. The remaining useful life of the machine was 5 years from the date of acquisition. Depreciation rate is 20% per year based on the straight-line method and applied on a time apportionment basis. ii) The inventory of Synergy includes $8,000 of goods purchased in the post-acquisition period from Kannex cost plus 25%. iii) The Kannex Group values the non-controlling interest using the fair value method. At the date of acquisition, the fair value of the 40% non-controlling interest was $50,000. iv) A goodwill impairment test carried out at 30 November 2017 resulted in $10,000 of the recognised goodwill relating to Synergy being impaired. Required: 3 Prepare the consolidated Statement of Financial Position of Kannex group as at 30 November 2017. (show all your working clearly) On 1 June 2017 Kannex bought 60% of Synergy paying $76,000 cash. The summarised Statements of Financial Position for the two companies as at 30 November 2017 are: Non-current assets Investments Kannex Synergy $ $ 138,000 115,000 98,000 Current assets Inventories 15,000 17,000 Receivables 19,000 20,000 Cash at bank 2,000 272,000 152,000 Ordinary share 50,000 40,000 Retained earnings 189,000 69,000 239,000 109,000 Current liabilities 33,000 43,000 272,000 152,000 Additional information: The following information is relevant: i) On the date of acquisition of Synergy the; - retained earning of Synergy was $5,250 - the fair value of the non-current assets (machine) of Synergy was $10,000 in excess of its carrying value. The remaining useful life of the machine was 5 years from the date of acquisition. Depreciation rate is 20% per year based on the straight-line method and applied on a time apportionment basis. ii) The inventory of Synergy includes $8,000 of goods purchased in the post-acquisition period from Kannex cost plus 25%. iii) The Kannex Group values the non-controlling interest using the fair value method. At the date of acquisition, the fair value of the 40% non-controlling interest was $50,000. iv) A goodwill impairment test carried out at 30 November 2017 resulted in $10,000 of the recognised goodwill relating to Synergy being impaired. Required: 3 Prepare the consolidated Statement of Financial Position of Kannex group as at 30 November 2017. (show all your working clearly)
Expert Answer:
Answer rating: 100% (QA)
Consolidated Statement of Financial Position of Kannex Group as at 30 November 2017 Working Investme... View the full answer
Related Book For
International Financial Reporting And Analysis
ISBN: 9781473766853
8th Edition
Authors: David Alexander, Ann Jorissen, Martin Hoogendoorn
Posted Date:
Students also viewed these finance questions
-
To raise funds aimed at providing more support for public schools, a state government has just imposed a unit excise tax equal to $4 for each monthly unit of wireless phone services sold by each...
-
Joey, a public limited company, operates in the media sector. Joey has investments in two companies. The draft statements of financial position at 30 November 20X4 are as follows: The following...
-
Methanol, CH3OH, is prepared industrially from the gasphase catalytic balanced reaction that has been depicted here using molecular models. In a laboratory test, a reaction vessel was filled with...
-
How might increased use of technology contribute to declining biological diversity?
-
How do you navigate the delicate balance between the perceived urgency of immediate tasks and the long-term strategic allocation of temporal resources ? Explain
-
Define distributed information system architecture and provide an example.
-
Tate Tasers Inc. is preparing interim financial statements for the quarter ending 31 March 20X1 and needs to estimate the value of inventory on hand at the end of the quarter. Physical inventory...
-
1. Construct a truth table for the following: a. out x'yz +(xyz)' b. out (x+z')(x+y')(y+z) 2. Simplify the following functional expressions using Boolean algebra and its identities. List the identity...
-
1. List the steps of blood flow through the lungs (pulmonary circulation) starting from the right ventricle to left atrium(5steps) 2. List the steps of blood flow through the heart starting from the...
-
what economic terminology describes Preschools in cities such as New York and Chicago lament the lack of parks and green space where they can take their charges. But city officials argue that there...
-
Case Study: You work in employment services. Ben is one of your colleagues you have worked with for over ten years, and you would consider him a close friend. Recently you have noticed Ben has been...
-
Jim is a manager at a frozen food company and wants to understand the way people in different countries think and act so that the company can respond to their needs appropriately. What is the best...
-
Nominal GDP and Real GDP Components Nominal GDP Real GDP Gross domestic product 26,798.6 20,386.5 Personal consumption expenditures 18,301.6 14,419.9 Gross private domestic investment 4,615.5 3,608.4...
-
Consider the following menu item served at your restaurant: Rack of New Zealand Lamb with Garlic & Rosemary served with Roasted Potatoes and Black Truffle Butter. (a) What are the dominant, complex...
-
Read the case study DCS Sanitation Management v. Eloy Castillo and answer the question and Was the hiring of DCS employees by Packers ethical?
-
The cash records of Holly Company show the following four situations. 1. The June 30 bank reconciliation indicated that deposits in transit total $720. During July, the general ledger account Cash...
-
A child on a sled slides down an icy slope, starting at a speed of \(2.5 \mathrm{~m} / \mathrm{s}\). The slope makes a \(15^{\circ}\) angle with the horizontal. After sliding \(10 \mathrm{~m}\) down...
-
You hold a puck at the top of an ice-covered ramp inclined at \(60^{\circ}\) with respect to the vertical. Your friend stands nearby on level ground and holds a ball at the same height \(h\) above...
-
You throw a ball straight up with an initial speed of \(10 \mathrm{~m} / \mathrm{s}\). (a) What is the ball's instantaneous acceleration at instant \(t_{1}\), just after it leaves your hand; at...
Study smarter with the SolutionInn App