Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on 1 july 2018 pumba ltd acquired 85% of the share

On 1 July 2018 Pumba Ltd acquired 85% of the shares in Timon Ltd. The...

90.2K

Verified Solution

Question

Accounting

On 1 July 2018 Pumba Ltd acquired 85% of the shares in Timon Ltd. The equity of Timon Ltd at 1 July 2018 consisted of the following:

Share capital $902,000

Retained earnings $550,000

All identifiable net assets of Timon Ltd were recorded at fair value except for the carrying amount of equipment which was $150,000 lower than fair value. The remaining useful life of the equipment is 5 years.

Assuming that Timon Ltd reported a net profit of $275,000 at 30 June 2019. What is the NCI share of profit (hint: after the appropriate adjustment have been made) at 30 June 2019?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Sunburn Sunscreen has a zero coupon bond issue outstanding with a $21,000 face value that matures...

Finance
Q

Methyl groups in DNA DNA sometimes has chemical groups attached called methyl groups that affect...

Biology
Q

An object of mass 200 kg is released from rest from a boat into the...

Physics
Q

The altitude to the hypotenuse of a right triangle divides the triangle into two triangles...

Geometry
Q

Solve the following equation: 2/3 e^x - 2 = 4

Basic Math
Q

Consider the Standard Normal distribution The mean is always and the standard deviation is always...

Statistics
Q

The transformation shown is a translation 3 True False 7 n 2 H H

Algebra
Q

Assume the car can be purchased for 0% down for 60 months (in lieu of...

Algebra
Q

Current Attempt in Progress BAK Corp. is considering...

Accounting
Q

Entries for discounted note payable A business issued a 60-day note for $54,000 to a...

Accounting
Q

choose KKB Engineering Berhad (stock code:9466) Task Review the financial statements...

Accounting
Q

When you state that symbols are not intrinsically connected to what they represent, you are...

Accounting