On 1 July 2021, C Ltd purchased 90% of the share capital of D Ltd...
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Accounting
On July C Ltd purchased of the share capital of D Ltd for $ At that date, shareholders equity of D Ltd was: $ Share capital General reserve Retained earnings The abridged statement of comprehensive income of both companies for the year ended June were as follows: C Ltd D Ltd $ $ Retained earnings July Operating profit Interim dividend paid Proposed dividend Retained earnings June Additional information a The closing inventory of C Ltd included goods of $ bought from D Ltd This inventory originally cost D Ltd $ b C Ltd included in its final accounts the dividends provided by D Ltd c All dividends are from postacquisition profit. d The directors have applied the impairment test for goodwill and determined that a writedown of $ is required for consolidation purposes as at June e The company tax rate is Required: Prepare an acquisition analysis assuming the full goodwill method. Calculate the NCI.
On July C Ltd purchased of the share capital of D Ltd for $ At that date, shareholders equity of D Ltd was:
$
Share capital
General reserve
Retained earnings
The abridged statement of comprehensive income of both companies for the year ended June were as follows:
C Ltd D Ltd
$ $
Retained earnings July
Operating profit
Interim dividend paid
Proposed dividend
Retained earnings June
Additional information
a The closing inventory of C Ltd included goods of $ bought from D Ltd This inventory originally cost D Ltd $
b C Ltd included in its final accounts the dividends provided by D Ltd
c All dividends are from postacquisition profit.
d The directors have applied the impairment test for goodwill and determined that a writedown of $ is required for consolidation purposes as at June
e The company tax rate is
Required:
Prepare an acquisition analysis assuming the full goodwill method.
Calculate the NCI.
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