Question Completion Status: On 1 July 2012, Ninja Ltd acquired 70% of the share capital of Baby Ltd for $2,650,000 paid in cash. At the date of acquisition, the accounts of Baby Ltd include the following: Share Capital $2,400,000 General reserve 580,000 Retained earnings 600,000 All the identifiable assets and liabilities of Baby Ltd were recorded at fair value except for the following: Carrying amount Fair value Inventory $250,000 $280,000 The inventory was sold outside the group for $240,000 by 30 June 2016. Additional information: a) The inventory of Ninja Ltd on 1 July 2016 included inventory purchased from Baby Ltd for $104,500. The original cost of the inventory was $69,500. The inventory was sold outside the group in January 2017. b) On 1 July 2016, Ninja Ltd borrowed $160,000 from Baby Ltd. This amount is to be repaid in full on 1 June 2019. The interest expense on the borrowing is $16,000 per annum. Ninja Ltd has paid $5,000 of the interest expense during the year ended 30 June 2017. c) On 1 August 2012, Ninja Ltd sold land to Baby Ltd for $1,350,000. The land originally cost Ninja Ltd $1,210,000. The land was sold outside the group by 30 June 2017. d) Ninja Ltd uses the proportionate interest goodwill method. The goodwill is not considered impaired. The financial statements of Baby Ltd for the year ended 30 Jne 2017 showed: Save All Answers Remaining Time: 1 hour, 56 minutes, 48 seconds. * Question Completion Status: was sold outside the group by 30 June 2017 d) Ninja Ltd uses the proportionate interest goodwill method. The goodwill is not considered impaired. The financial statements of Baby Ltd for the year ended 30 Jne 2017 showed: Profit before tax $470,000 Income tax expense 141,000 Profit after tax $329,000 Retained profits-opening bal. 705,000 Dividend paid _(70,000) Retained profits - closing bal. $964,000 Share capital 2,400,000 General reserve 580,000 The applicable tax rate is 30%. The completed acquisition analysis and consolidation entries are as follows. Acquisition analysis Remaining Time: 1 hour, 56 minutes, 41 seconds. * Question Completion Status: The completed acquisition analysis and consolidation entries are as follows. Acquisition analysis Purchase price $2,650,000 Less: FVINA Share capital $2,400,000 General reserve 580,000 Retained earnings 600,000 FVA (280,000 - 250,000) X 70% 21,000 $3,601,000 X 70% Interest acquired (70%) 2,520,700 Goodwill $129,300 Consolidation entries at 30 June 2017: Dr($) Cr($) Question Completion Status: Consolidation entries at 30 June 2017: Dr($) Cr($) Elimination entry Share capital General reserve Retained earnings 1,680,000 406,000 420,000 FVA 14,700 Goodwill 129,300 Investment in Sub 2,650,000 Sale of revalued inventory Retained earnings FVA (280,000 - 250,000) X 70% 21,000 21,000 Intra group sale of inventory (upstream) Save All Answers Remaining Time: 1 hour, 56 minutes, 20 seconds. Question Completion Status: 35,000 Intra group sale of inventory (upstream) Retained earnings COGS (104500 - 69500) Income tax expense Retained earnings 35,000 10,500 10,500 Intra-group borrowing Accounts payable Accounts receivable 160,000 160,000 interest revenue 16,000 16,000 Interest expense Interest payable Interest receivable 11,000 11,000 Intra group sale of land (downstream) | ng dng a Agoda.com B Booking.com TripAdvisor dn 44/45 1&new attempt=1&content... My Student Admin... 4 Tng hp 30 loi ... Login 0 In Parch LTD - n.. Remaining Time: 1 hour, 56 minutes, 11 seconds. * Question Completion Status: Intra group sale of land (downstream) Retained earnings (1,350,000 - 1,210,000) Gain on sale 140,000 140,000 Income tax expense Retained earnings 42,000 42,000 Intra-group dividend Dividend revenue Dividend paid 49,000 49,000 Required: 1) Prepare a memorandum for the NCI share of profits for the year ended 30 June 2017. (5 marks) 2) Prepare a memorandum for the NCI share of shareholders' equity as at 30 June 2017.(8 marks) TT T Arial 3 (12pt) TEE Question Completion Status: On 1 July 2012, Ninja Ltd acquired 70% of the share capital of Baby Ltd for $2,650,000 paid in cash. At the date of acquisition, the accounts of Baby Ltd include the following: Share Capital $2,400,000 General reserve 580,000 Retained earnings 600,000 All the identifiable assets and liabilities of Baby Ltd were recorded at fair value except for the following: Carrying amount Fair value Inventory $250,000 $280,000 The inventory was sold outside the group for $240,000 by 30 June 2016. Additional information: a) The inventory of Ninja Ltd on 1 July 2016 included inventory purchased from Baby Ltd for $104,500. The original cost of the inventory was $69,500. The inventory was sold outside the group in January 2017. b) On 1 July 2016, Ninja Ltd borrowed $160,000 from Baby Ltd. This amount is to be repaid in full on 1 June 2019. The interest expense on the borrowing is $16,000 per annum. Ninja Ltd has paid $5,000 of the interest expense during the year ended 30 June 2017. c) On 1 August 2012, Ninja Ltd sold land to Baby Ltd for $1,350,000. The land originally cost Ninja Ltd $1,210,000. The land was sold outside the group by 30 June 2017. d) Ninja Ltd uses the proportionate interest goodwill method. The goodwill is not considered impaired. The financial statements of Baby Ltd for the year ended 30 Jne 2017 showed: Save All Answers Remaining Time: 1 hour, 56 minutes, 48 seconds. * Question Completion Status: was sold outside the group by 30 June 2017 d) Ninja Ltd uses the proportionate interest goodwill method. The goodwill is not considered impaired. The financial statements of Baby Ltd for the year ended 30 Jne 2017 showed: Profit before tax $470,000 Income tax expense 141,000 Profit after tax $329,000 Retained profits-opening bal. 705,000 Dividend paid _(70,000) Retained profits - closing bal. $964,000 Share capital 2,400,000 General reserve 580,000 The applicable tax rate is 30%. The completed acquisition analysis and consolidation entries are as follows. Acquisition analysis Remaining Time: 1 hour, 56 minutes, 41 seconds. * Question Completion Status: The completed acquisition analysis and consolidation entries are as follows. Acquisition analysis Purchase price $2,650,000 Less: FVINA Share capital $2,400,000 General reserve 580,000 Retained earnings 600,000 FVA (280,000 - 250,000) X 70% 21,000 $3,601,000 X 70% Interest acquired (70%) 2,520,700 Goodwill $129,300 Consolidation entries at 30 June 2017: Dr($) Cr($) Question Completion Status: Consolidation entries at 30 June 2017: Dr($) Cr($) Elimination entry Share capital General reserve Retained earnings 1,680,000 406,000 420,000 FVA 14,700 Goodwill 129,300 Investment in Sub 2,650,000 Sale of revalued inventory Retained earnings FVA (280,000 - 250,000) X 70% 21,000 21,000 Intra group sale of inventory (upstream) Save All Answers Remaining Time: 1 hour, 56 minutes, 20 seconds. Question Completion Status: 35,000 Intra group sale of inventory (upstream) Retained earnings COGS (104500 - 69500) Income tax expense Retained earnings 35,000 10,500 10,500 Intra-group borrowing Accounts payable Accounts receivable 160,000 160,000 interest revenue 16,000 16,000 Interest expense Interest payable Interest receivable 11,000 11,000 Intra group sale of land (downstream) | ng dng a Agoda.com B Booking.com TripAdvisor dn 44/45 1&new attempt=1&content... My Student Admin... 4 Tng hp 30 loi ... Login 0 In Parch LTD - n.. Remaining Time: 1 hour, 56 minutes, 11 seconds. * Question Completion Status: Intra group sale of land (downstream) Retained earnings (1,350,000 - 1,210,000) Gain on sale 140,000 140,000 Income tax expense Retained earnings 42,000 42,000 Intra-group dividend Dividend revenue Dividend paid 49,000 49,000 Required: 1) Prepare a memorandum for the NCI share of profits for the year ended 30 June 2017. (5 marks) 2) Prepare a memorandum for the NCI share of shareholders' equity as at 30 June 2017.(8 marks) TT T Arial 3 (12pt) TEE