Calculate the non-controlling interest in G Ltd

Assignment Help Accounting Basics

Reference no: EM132635525

Question - The following are financial statements of H Ltd and its subsidiary G Ltd for the year ending 30 June 2019. The following are in 000 (thousands of dollars).

Other Information:

H Ltd acquired its 80% interest in G Ltd on 1 July 2010, 9 years earlier. At that date capital and reserves of G Ltd were:

Share capital $200,000

Retained earnings $170,000

$370,000

At the date of acquisition all assets were considered to be fairly valued.

-The management of H Ltd values any NCI at the proportionate share of G Ltd's identifiable net assets.

-During the year, H Ltd made total sales to G Ltd of $65,000, while G Ltd sold $52,000 in inventory to H Ltd.

-The opening inventory in H Ltd as at 1 July 2018 included inventory acquired from G Ltd for $42,000 that had cost G Ltd $35,000 to produce.

-The closing inventory in H Ltd includes inventory acquired from G Ltd at a cost of $33,600. This cost G Ltd $28,000 to produce.

-The closing inventory of G Ltd includes inventory acquired from H Ltd at a cost of $12,000. This cost H Ltd $9,600 to produce.

-The management of H Ltd believed that goodwill acquired was impaired by $3,000 in the current financial year. Previous impairments of goodwill amounted to $22,500.

-On 1 July 2018 H Ltd sold an item of plant to G Ltd for $116,000 when its carrying value in H Ltd's account was $81,000 (cost $135,000, accumulated depreciation of $54,000). This plant is assessed as having a remaining useful life of 6 years.

-G Ltd paid $26,500 in management fees to H Ltd.

-The tax rate is 30%.

Required -

1) Prepare the intragroup transaction entries based on the financial statements and other information.

2) Calculate the non-controlling interest in G Ltd.

Reference no: EM132635525

Questions Cloud

Discussion regarding data analytics and data mining : Discussion regarding Data Analytics and Data Mining. Sometimes these terms are used synonymously but there is a difference.

Create the original balance of the loan : Create the original balance of the loan, and (2) the allocation of the first two monthly payments between interest expense and the reduction

Discussion about the national healthcare issue : Review the Resources and think about the national healthcare issue/stressor you previously selected for study in Module 1. Reflect on the competing needs.

How calculate the amount of cash payments zetix : How Calculate the amount of cash payments Zetix was required to make in each of the two calendar years that were affected by the note payable

Calculate the non-controlling interest in G Ltd : The management of H Ltd values any NCI at the proportionate share of G Ltd's identifiable net assets. Calculate the non-controlling interest in G Ltd

Scalability and efficacy of existing analytics techniques : The scalability and efficacy of existing analytics techniques being applied to big data must be empirically examined.

Small amount of inoculum : Why is it important that a small amount of inoculum be used in preparation of an agar slant?

How reproduce the financial statements disclosures : Reproduce the financial statements disclosures of the annual report of 2019 of Tesla lnc. and explain these disclosures? Discuss with an example.

Before and after working with bacteria : Why is it important that you disinfect your work area both before and after working with bacteria?

User Account

All Pages