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Question 1 (20 points) On 30th of September 2016, Apple Inc. paid 25,000 to acquire 60% of the ordinary shares and 25% of the preference shares of Beats Electronics. On that date, the retained earnings of Beats Electronics were 2,000, fair market value of property plant and equipment were 27,000 and all other assets and liabilities were shown at fair values. Except the recognition of the actual acquisition, the statements of financial position of Apple Inc. and Beats Electronics as at 30th of September 2018 are as below. Consolidated Statement of Financial Position as at 30 September, 2018 Apple Inc Beats Electronics Assets Long-Term Assets Property, plant and equipment 219,000.00 23,500.00 Investment in Subs Goodwill 219,000.00 23,500.00 Current Assets 236,000.00 20,500.00 455,000.00 44,000.00 300,000.00 25,000.00 5,000.00 Equity Ordinary share capital Preferred shareholding Revaluation Reserve Retained earnings Pre-acquisition Post-acquisition 59,500.00 4,500.00 359,500.00 34,500.00 Non-Controlling Interest Liabilities Current liabilities 95,500.00 455,000.00 9,500.00 44,000.00 Beats Electronics has issued no share since being acquired by Apple Inc. Goodwill has suffered an impairment loss of 85% since acquisition due to tax evasion scandals. Non-controlling interest are to be measured at the appropriate proportion of the subsidiary's identifiable net assets. Requirements: (30 points) a. Prepare a consolidated statement of financial position as 30th of September 2018. b. Record the related Journal entries at the parent level, subsidiary level and consolidated level in the accounting equation. Question 1 (20 points) On 30th of September 2016, Apple Inc. paid 25,000 to acquire 60% of the ordinary shares and 25% of the preference shares of Beats Electronics. On that date, the retained earnings of Beats Electronics were 2,000, fair market value of property plant and equipment were 27,000 and all other assets and liabilities were shown at fair values. Except the recognition of the actual acquisition, the statements of financial position of Apple Inc. and Beats Electronics as at 30th of September 2018 are as below. Consolidated Statement of Financial Position as at 30 September, 2018 Apple Inc Beats Electronics Assets Long-Term Assets Property, plant and equipment 219,000.00 23,500.00 Investment in Subs Goodwill 219,000.00 23,500.00 Current Assets 236,000.00 20,500.00 455,000.00 44,000.00 300,000.00 25,000.00 5,000.00 Equity Ordinary share capital Preferred shareholding Revaluation Reserve Retained earnings Pre-acquisition Post-acquisition 59,500.00 4,500.00 359,500.00 34,500.00 Non-Controlling Interest Liabilities Current liabilities 95,500.00 455,000.00 9,500.00 44,000.00 Beats Electronics has issued no share since being acquired by Apple Inc. Goodwill has suffered an impairment loss of 85% since acquisition due to tax evasion scandals. Non-controlling interest are to be measured at the appropriate proportion of the subsidiary's identifiable net assets. Requirements: (30 points) a. Prepare a consolidated statement of financial position as 30th of September 2018. b. Record the related Journal entries at the parent level, subsidiary level and consolidated level in the accounting equation

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