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

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

Determine the depletion cost per board foot, Conan O'Brien Logging and Lumb...

Conan O'Brien Logging and Lumber Company owns 3,300 acres of timberland on the north side of Mount Leno, which was purchased in 2000 at a cost of $650 per acre. In 2012, O'Brien be

#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 volume profit analysis, Cost Volume Profit Analysis 1. Post Publish...

Cost Volume Profit Analysis 1. Post Publishers has collected the following data for recent months: Month                 Issues published              Total cost May

Cost classification, #question.discuss the importance of cost classificatio...

#question.discuss the importance of cost classification to a business organisation?

Davids net state lottery gains, One month before she died on April 14, 2002...

One month before she died on April 14, 2002, Barbara Gent (Amy's aunt) gave Amy a coin collection. Based on careful records that Barbara kept, the collection had a cost basis of $9

You should be willing to pay the worker , You are the manager of a firm tha...

You are the manager of a firm that sells output at a price of $40 per unit. You are interested in hiring a new worker who will increase your firm's output by 2,000 units per year.

MARGINAL COST APPLICATIONS, HOW APPLICABLE IS THE MARGINAL COSTING CONCEPT ...

HOW APPLICABLE IS THE MARGINAL COSTING CONCEPT IN ACCOUNTING

Example of contract account, Example of Contract Account  A compa...

Example of Contract Account  A company has been awarded a contract to build a house.  It is a contract Number 45 for the company and the contract price is shs.2.65 millio

What is operating income under absorption costing, Loring Company had the f...

Loring Company had the following data for the month: Variable costs per unit: Direct Materials $4 Direct Labor 3.20 Variable Overhead 1 Variable selling expense 0.40 Fixed Ov

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