Prepare the consolidated statement of profit

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Reference no: EM13558026

At 1 January 20X9 Penguin plc paid $1.2m for an 80% share in Platypus Ltd. Platypus Ltd's net assets at the date of acquisition were:

 

 $'000

Share capital

500

Retained earnings

850

Revaluation surplus

450

It is group policy is to measure non-controlling interests at acquisition at fair value. The fair value of the non-controlling interest at the date of acquisition was $400,000.

Statements of profit or loss for both companies for the year ended 31 December 20X9 were:

 

Penguin

Platypus

 

  $'000

   $'000

Revenue

12500

2,600

Cost of sales

(7400)

(1,090)

Gross profit

5100

1,510

Distribution costs

(700)

(220)

Administrative expenses

(1300)

(550)

Finance costs

(40)

       -

Profit before tax

3060

740

Income tax expense

(900)

(230)

Profit for the year

2160

510

Required

Calculate the goodwill on acquisition and prepare the consolidated statement of profit or loss of the Penguin Group for the year ended 31 December 20X9.

Reference no: EM13558026

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