Chapter 6 example

Chapter 6 example - Impairment of AD 1700 6340 Add: Opening...

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Peter Salt Consolidated Sales 900,000 250,000 975,000 Management fees 25,000 Interset 3600 Gain on sale of land 20000 Dividends 12000 937,000 273,600 975,000 Cost of sales 540,000 162000 536,050 Interest expense 3600 Other expenses 196400 71600 244700 Income tax expense 80000 16000 84380 820,000 249,600 865,130 Profit 117,000 24,000 109,870 Attributable to: Shareholders of Parent 108,266 NCI 1604 Retained Earnings Balance, Jan1 153000 72000 Profit 117000 24000 270000 96000 Dividends 50000 15000 Ending balance 220000 81000
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26250 40000 26500 Unrealized profit Inventory Salt->Peter Peter-->Salt Land Profit 2800 6600 5250 20000 Tax 1120 2640 2100 8000 Net profit 1680 3960 3150 12000 Calculation of Consolidated Profit Peter's profit 117000 Total profits 109870 Less: Dividends from Salt 12000 Adjustments: Attributable to: Less: Ending invenyory profit 3150 Controlling Shareholders 108266 Adjusted Profit 101850 NCI 1604 Salt's Profit 24000 Adjustments: Ending inventory profit 3960 Profit from land 12000
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Unformatted text preview: Impairment of AD 1700 6340 Add: Opening inventory profit 1680 Adjusted Profit 8020 Peter Salt Consolidated Land 175000 19000 174000 PPE 238000 47000 285000 Investment in Salt Co. 65000 Goodwill 16150 Inventory 32000 27000 47150 Deferred Income tax 12740 Notes Receivable 60000 Accounts Receivable 70000 10000 80000 Cash 12000 8000 20000 592000 171000 635040 Common shares 100000 50000 100000 Retained Earnings 220000 81000 256802 Non Controlling Interest 26238 Notes Payable 60000 Other liabilities 212000 40000 252000 592000 171000 635040 Peter Salt Beginning RE 153000 72000 Less: Acquisition RE 10,000 Opening inventory profit 1680 Goodwill Impairment 3400 Adjusted Beginning RE 153000 56,920 Consolidated 153000 45536 198536 Beginnning RE 198536 Profits 108266 Dividends 50000 Ending RE 256802...
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Chapter 6 example - Impairment of AD 1700 6340 Add: Opening...

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