P Co increases ownership interest in S Co from 70% to 85% on 1 January 20x2....

 

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P Co increases ownership interest in S Co from 70% to 85% on 1 January 20x2. The following information pertains to S Co: Investment by P Co Fair value of Non-controlling (NCI) Percentage held by P Co NCI percentage As at acquisition date As at 01-01-20x2 15,400,000 21,400,000 interests Share capital Pre-acquisition retained earnings Unrecognized intangible asset Additional information: 5,940,000 21,340,000 70% 30% 11,500,000 1,800,000 500,000 1. Intangible asset remains unimpaired at current date. 2. Retained earnings of S Co as at 31 December 20x1 is $3,600,000. Current income after tax for the year ended 31 December 20x2 is $1,300,000. 85% 15% Required (a) Determine the amounts of the following items as at 31 December 20×2: 1. New goodwill 2. Effects that are taken to the Income Statement i. Re-measurement gain or loss ii. Profit or loss on sale of investment 3. Equity effects that are not taken to the Income Statement i. Profit or loss arising from changes in ownership ii. Changes in non-controlling interest¹ (b) Prepare the consolidation adjusting entries for the year ended 31 December 20x2. P Co increases ownership interest in S Co from 70% to 85% on 1 January 20x2. The following information pertains to S Co: Investment by P Co Fair value of Non-controlling (NCI) Percentage held by P Co NCI percentage As at acquisition date As at 01-01-20x2 15,400,000 21,400,000 interests Share capital Pre-acquisition retained earnings Unrecognized intangible asset Additional information: 5,940,000 21,340,000 70% 30% 11,500,000 1,800,000 500,000 1. Intangible asset remains unimpaired at current date. 2. Retained earnings of S Co as at 31 December 20x1 is $3,600,000. Current income after tax for the year ended 31 December 20x2 is $1,300,000. 85% 15% Required (a) Determine the amounts of the following items as at 31 December 20×2: 1. New goodwill 2. Effects that are taken to the Income Statement i. Re-measurement gain or loss ii. Profit or loss on sale of investment 3. Equity effects that are not taken to the Income Statement i. Profit or loss arising from changes in ownership ii. Changes in non-controlling interest¹ (b) Prepare the consolidation adjusting entries for the year ended 31 December 20x2.

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a Determine the of the 31 Dec 20X21 D following Hims as at New goo... View the full answer