Calculate the amounts that will show in the statement, Cost Accounting

Assignment Help:

MX obtains 80% of the 1 million issued $1 ordinary share capital of FZ on 1 May 2009 for $1,750,000 when FZ's reserved earnings were $920,000.

The carrying worth was considered to be the same as fair worth with the exception of the following:

The carrying cost of FZ's property, plant and apparatus at 1 May 2009 was $680,000. The market cost at that date was estimated at $745,000. The remaining useful life of the property, plant and equipment was approximate at 5 years from the date of acquisition.

FZ had a delegation liability with a fair worth of $100,000. There was no modification to the value of this liability at the year-end.

MX estimates that the costs of reorganising the mutual entity following acquisition will be $200,000.

MX depreciates all assets on a straight line basis over their approximate useful lives on a monthly basis.

FZ sold freight to MX with a sales value of $300,000 during the 8 months since the acquisition. All of these stocks remain in MX's inventories at the year end. FZ creates 20% gross profit margin on all sales.

The retained earnings reported in the monetary statements of MX and FZ as at 31 December 2009 are $3.2 million and $1.1 million correspondingly. There has been no mutilation to goodwill since the date of acquisition.

The group policy is to measure non-controlling interest at fair value at the date of attainment. The fair value of non-controlling interest at 1 May 2009 was $320,000.

Required:

Calculate the amounts that will appear in the consolidate statement of financial position of the MX Group as at 31 December 2009 for:

(i) Goodwill;

(ii) Consolidated reserved earnings; and

(iii) Non-controlling interest.


Related Discussions:- Calculate the amounts that will show in the statement

Batch costing, Batch Costing This is a kind of job costing that is uti...

Batch Costing This is a kind of job costing that is utilized when production consists of limited repetitive work and definite number of item manufactured in one batch.  A batc

Approach in cost accounting, Approach in Cost Accounting Cost accounti...

Approach in Cost Accounting Cost accounting is based on the framework or concept of cost centers that is all the costs incurred throughout the production process contain to be

Direct and indirect costs, Direct and Indirect costs Recall such direc...

Direct and Indirect costs Recall such direct costs are costs which can be traced particularly to the end product of the production procedure while indirect costs cannot be so

Long run average marginal cost curves of the firm, Q. Let a firm's producti...

Q. Let a firm's production function be given by K 0.3 L 0.7 . (i) Sketch (without specific numbers) the shape of the long run average and long-run marginal cost curves of the fir

Student, i asking for start up

i asking for start up

What would be the impact on net income, Brandywine Homecare, a not-for-prof...

Brandywine Homecare, a not-for-profit business, had revenues of $12 million in 2011. Expenses other than depreciation totaled 75 percent of revenues, and depreciation expense was $

Closing a factory , i have a factory and 87 employees . we have a closure p...

i have a factory and 87 employees . we have a closure plan in 12 months. what would be the charges?

#title, compare tradition costing and activity costing methods of overhead...

compare tradition costing and activity costing methods of overheads abpsrption based on production units,labour hourd and machine hours

Cost estimation, Cost Estimation  Cost estimation may be defined with...

Cost Estimation  Cost estimation may be defined with 'a study that attempts to predict among costs and the activity level or cost driver that causes those costs. In practical

Relationship between cost accounting and business enterprise, Relationship ...

Relationship between Cost Accounting and Business Enterprise Cost accounting, like will be mentioned later to adopts a cost center approach to accounting for costs. A cost cen

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd