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P Co increases ownership interest in S Co from 40% to 70% on 1 January 202. The following information pertains to SCo : Additional information: 1. Intangible asset remains unimpaired at current date. 2. Retained earnings of S Co as at 1 January 202 is $5,600,000. Current income after tax for the year ended 31 December 20x2 is $1,800,000. Required (a) Determine the amounts of the following items as at 31 December 202 : 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 interest 4 (b) Prepare the consolidation adjusting entries for the year ended 31 December 202. P Co increases ownership interest in S Co from 40% to 70% on 1 January 202. The following information pertains to SCo : Additional information: 1. Intangible asset remains unimpaired at current date. 2. Retained earnings of S Co as at 1 January 202 is $5,600,000. Current income after tax for the year ended 31 December 20x2 is $1,800,000. Required (a) Determine the amounts of the following items as at 31 December 202 : 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 interest 4 (b) Prepare the consolidation adjusting entries for the year ended 31 December 202

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