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