Paprika Co purchased 75% of the equity share capital of Salt Co on 30 April 20X4. Non-controlling interests are measured at fair value.243 Paprika Co purchased 75% of the equity share capital of Salt Co on 30 April 20X4. Non-controlling interests are measured at fair value.The cost of sales of both companies for the year ended 30 April 20X6 are as follows:

The following information is provided:

1. Salt Co had machinery included in its net assets at acquisition with a carrying amount of $120,000 but a fair value of $200,000. The machinery had a remaining useful life of eight years at the date of All depreciation is charged to cost of sales
2. During the year, Salt Co sold some goods to Paprika Co for $32,000 at a margin of 25%. Three quarters of these goods remained in inventory at year end.

What is the cost of sales in Paprika Co's consolidated statement of profit or loss for the year ended 30 April 20X6?

Basil Co acquired 60% of Parsley Co on 1 March In September 20X9 Basil Co sold $46,000 worth of goods to Parsley Co. Basil Co applies a 30% mark-up to all its sales. 25% of these goods were still held in inventory by Parsley Co at the end of the year.

An extract from the draft statements of profit or loss of Basil Co and Parsley Co at 31 December 20X9 is:

All revenue and costs arise evenly throughout the year.

What will be shown as gross profit in the consolidated statement of profit or loss of Basil Co for the year ended 31 December 20X9?

On 1 January 20X3 Westbridge Co acquired all of Brookfield Co's 100,000 $1 shares for $300,000. The goodwill acquired in the business combination was $40,000, of which 50% had been written off as impaired by 31 December 20X5. On 31 December 20X5 Westbridge Co sold all of Brookfield's shares for $450,000 when Brookfield had retained earnings of $185,000.

What is the profit on disposal that should be included in the INDIVIDUAL ENTITY financial statements of Westbridge Co? $_______

Note. You are not required to put $ sign nor any coma. (e.g. 1000)

Hillusion Co acquired 80% of Skeptik Co on 1 July 20X2. In the post-acquisition period Hillusion Co sold goods to Skeptik Co at a price of $12 million. These goods had cost Hillusion Co $9 million. During the year to 31 March 20X3 Skeptik Co had sold $10 million (at cost to Skeptik Co) of these goods for $15 million.

How will this affect group cost of sales in the consolidated statement of profit or loss of Hillusion Co for the year ended 31 March 20X3?

Brigham Co has owned 70% of Dorset Co for many years. It also holds a $5 million 8% loan note from Dorset Co. One of Dorset Co's non-current assets has suffered an impairment of $50,000 during the year.
There is a balance in the revaluation surplus of Dorset Co of $30,000 in respect of this asset. The impairment loss has not yet been recorded.

The entity financial statements of Dorset Co show a profit for the year of $1.3 million.

What is the amount attributable to the non-controlling interests in the consolidated statement of profit or loss?

On 1 July 20X7, Spider Co acquired 60% of the equity share capital of Fly Co and on that date made a $10 million loan to Fly Co at a rate of 8% per annum.

What will be the effect on group retained earnings at the year-end date of 31 December 20X7 when this intragroup transaction is cancelled?

Wiley Co acquired 80% of Coyote Co on 1 January 20X8. At the date of acquisition Coyote Co had a building which had a fair value $22 million and a carrying amount of $20 million. The remaining useful life of the building was 20 years.

Coyote Co's profit for the year to 30 June 20X8 was $1.6 million which accrued evenly throughout the year.

Wiley Co measures non-controlling interest at fair value. At 30 June 20X8 it estimated that goodwill in Coyote Co was impaired by $500,000.

What is the total comprehensive income attributable to the non-controlling interest at 30 June 20X8?

Premier Co acquired 80% of Sanford Co on 1 June 20X1. Sales from Sanford Co to Premier Co throughout the year ended 30 September 20X1 were consistently $1 million per month. Sanford Co made a mark-up on cost of 25% on these sales. At 30 September 20X1 Premier Co was holding $2 million inventory that had been supplied by Sanford Co in the post-acquisition period.

By how much will the unrealised profit decrease the profit attributable to the non-controlling interest for the year ended 30 September 20X1?

On 1 January 20X3 Westbridge Co acquired all of Brookfield Co's 100,000 $1 shares for $300,000. The goodwill acquired in the business combination was $40,000, of which 50% had been written off as impaired by 31 December 20X5. On 31 December 20X5 Westbridge Co sold all of Brookfield Co's shares for $450,000 when Brookfield Co had retained earnings of $185,000.

Using the drop down box, select which is the correct answer for the profit on disposal that should be included in the CONSOLIDATED financial statements of Westbridge Co?

Alderminster Co acquired a 70% holding in Bidford Co on 1 January 20X4 for $600,000. At that date the fair value of the net assets of Bidford Co was $700,000. Alderminster Co measures non-controlling interest at its share of net assets.

On 31 December 20X6 Alderminster Co sold all its shares in Bidford Co for $950,000. At that date the fair value of Bidford Co's net assets was $850,000. Goodwill was not impaired.

What was the profit or loss on disposal to be recognised in the consolidated financial statements of Alderminster Co?