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

Estimate cost of financing, Calculate the equal monthly payments and the co...

Calculate the equal monthly payments and the cost of financing on a 10-year mortgage. The cash value of the house today is $500,000. You are paying monthly at a fixed rate of 6% pe

Sources of funds, We have noticed that working capital is needed to finance...

We have noticed that working capital is needed to finance that portion of current assets that is not financed through current liabilities. We also noticed that the investments repr

LIFO, I need an example for Lilo,Fifo, and weighted average method for a ye...

I need an example for Lilo,Fifo, and weighted average method for a year. Jan.begining inventory, purchases in Feb., April, July, October, and November. Can you help me with this?

Uniform Capitalization rules, Are public service corporations subject to un...

Are public service corporations subject to uniform capitalization rules?

Cost classification, Identify and explain many classification of costs for ...

Identify and explain many classification of costs for planning, control, performance evaluation and decision making.

To amortize the office improvements, On July 1, 2008, Falk Company signed a...

On July 1, 2008, Falk Company signed a contract to lease space in a building for 15 years. The lease contract calls for annual (prepaid) rental payments of $100,000 on each July 1

Determine equivalent units of the product, Determine Equivalent Units of th...

Determine Equivalent Units of the Product Let assume there are 4,000 units of a product in ending inventory out of that 60 percent are fully complete whereas the remaining are

Determine when to stock, Determine When to Stock It will be influence ...

Determine When to Stock It will be influence with the inventory system in place as given: 1. Periodic order system. The firm obtains a new order of the amo

Evaluate the discounted mean term, Evaluate the discounted mean term (DMT) ...

Evaluate the discounted mean term (DMT) of a bond redeemable at $120 nominal in 15 years time with annual coupons of 7% (based on a nominal bond of $100) at interest rates of 6% ,

Total landed cost, How many pounds of guava puree are required? a. In a ...

How many pounds of guava puree are required? a. In a month? b. How many in a year? In computing the Total Landed cost for mango concentrate, we are interested in the incre

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