Question

In: Accounting

Tulip Co acquired 80% of the share capital of Daffodil Co on 1 June 2015. The...

Tulip Co acquired 80% of the share capital of Daffodil Co on 1 June 2015. The summarised draft statements of profit or loss for Tulip Co and Daffodil Co for the year ended 31 May 2016 are shown below:

Tulip Co Daffodil Co
€'000 €'000
Sales revenue 8,400 3,200
Cost of sales (4,600) (1,700)
Gross profit 3,800 1,500
Operating expenses (2,200) (960)
Profit before tax 1,600 540
Taxation (600) (140)
Profit for the year 1,000 400

During the year Tulip Co sold goods costing €1,000,000 to Daffodil Co for €1,500,000. At 31 May 2016, 30% of these goods remained in Daffodil Co’s inventory.

Required:

Prepare the Tulip group consolidated statement of profit or loss for the year ended 31 May 2016 by writing the appropriate numbers in the blanks.

TULIP GROUP CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED 31 MAY 2016

€'000
Sales revenue
Cost of sales
Gross profit
Operating expenses
Profit before tax
Taxation
Profit for the year
Attributable to:
Owners of the parent
Non-controlling interest

Solutions

Expert Solution

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

d) Keswick Co acquired 80% of the share capital of Derwent Co on 1 June 20X5....
d) Keswick Co acquired 80% of the share capital of Derwent Co on 1 June 20X5. The summarised draft statements of profit or loss for Keswick Co and Derwent Co for the year ended 31 May 20X6 are shown below: Keswick Co Derwent Co R000 R000 Revenue 8,400 3,200 Cost of sales (4,600) (1,700) –––––– –––––– Gross profit 3,800 1,500 Operating expenses (2,200) (960) –––––– –––––– Profit before tax 1,600 540 Tax (600) (140) –––––– –––––– Profit for the year...
On January 1, 2015, Pack Co. acquired 80% of the common stock of Sack Co. by...
On January 1, 2015, Pack Co. acquired 80% of the common stock of Sack Co. by paying $80,000. On that date Sack' land was undervalued $3,800 and its Buildings (7 yr life) were undervalued $4,200 and its equipment (5 Yr life) were undervalued $2,000. A. Show the elements making of the cost of the investment. (Hint: Set up a schedule showing the controlling and non-controlling interest in the individual elements) B. Prepare consolidation entry S to eliminate the sub’s equity...
Avig Ltd acquired 80% of the issued capital of Non Ltd on 1 July 2015. The...
Avig Ltd acquired 80% of the issued capital of Non Ltd on 1 July 2015. The following three transactions occurred. 1) On 1 July 2018, Avig Ltd purchased equipment from Non Ltd for $1,500,000. The equipment had originally cost Non Ltd $1,200,000 when acquired on 1 July 2016. Non Ltd had been depreciating the equipment over 12 years using the straight-line method. Avig Ltd expected the remaining useful life of the equipment to be 10 years and also depreciates using...
Pink acquired 80% of the share capital of Blue on 1 April 2019. The retained earnings...
Pink acquired 80% of the share capital of Blue on 1 April 2019. The retained earnings of Blue on 30 Sept 2018 were £135,000. No dividends paid by Blue in the year to 30 Sept 2019. The fair value of the 20% non-controlling interest at acquisition was £200,000. At acquisition the fair value of Blue's plant exceeded its carrying amount by £200,000. Plants are depreciated at 20% rate (straight line method). Goodwill should be written down by £20,000 of its...
Juan Ltd acquired 80 percent share capital of Beach Ltd. On 1 July 2018 for a...
Juan Ltd acquired 80 percent share capital of Beach Ltd. On 1 July 2018 for a cost of $500,000. As at the date of acquisition, all assets and liabilities of Beach Ltd fairly valued except a land that has a carrying value $50,000 less than the fair value. The recorded balance of equity of Beach Ltd as at 1 July 2018 were as: Share capital $350,000 Retained earnings $100,000 Total $450,000 Additional information: ? The management of Juan Ltd values...
Question 4 Giant Ltd acquired 80 percent share capital of Expert Ltd. On 1 July 2018...
Question 4 Giant Ltd acquired 80 percent share capital of Expert Ltd. On 1 July 2018 for a cost of $1,600,000. As at the date of acquisition, all assets and liabilities of Expert Ltd were fairly valued except a land that has a carrying value $150,000 less than the fair value. The recorded balance of equity of Expert Ltd as at 1 July 2018 were as: Share capital $800,000 Retained earnings $200,000 General Reserve $400,000 Total $1,400,000 Additional information: ...
Ketelemob Limited (KL) established on 1October 2013 acquired 80% of the ordinary share capital of Tanzania...
Ketelemob Limited (KL) established on 1October 2013 acquired 80% of the ordinary share capital of Tanzania Mobilephones Limited (TML ) on 1 January 2016 when the accumulated profit figure of TML was Tsh.1,350 million.TML has not issued additional share capital since 1 January 2016.Ketelemod Limited (KL) has acquired 75% of the ordinary shares of Meru Limited on 1 October 2014 when the revenue reserves of MEru Limited amounted to KSh. 140 million .On 31st March 2017, Katelemob Limited disposed off...
In January 1, 2015, Springfield Company acquired an 80% interest in Lincoln Company for a purchase...
In January 1, 2015, Springfield Company acquired an 80% interest in Lincoln Company for a purchase price that was $350,000 over the book value of Lincoln’s Stockholders’ Equity on the acquisition date. Spring uses the equity method to account for its investment in Lincoln. Springfield assigned the acquisition-date AAP as follows: AAP Items Initial Fair Value Useful Life (years) Patent 200,000 10 Goodwill 150,000 Indefinite $350,000 Lincoln sells inventory to Springfield (upstream) which includes that inventory in products that it...
In January 1, 2015, Springfield Company acquired an 80% interest in Lincoln Company for a purchase...
In January 1, 2015, Springfield Company acquired an 80% interest in Lincoln Company for a purchase price that was $350,000 over the book value of Lincoln’s Stockholders’ Equity on the acquisition date. Spring uses the equity method to account for its investment in Lincoln. Springfield assigned the acquisition-date AAP as follows: AAP Items Initial Fair Value Useful Life (years) Patent 200,000 10 Goodwill 150,000 Indefinite $350,000 Lincoln sells inventory to Springfield (upstream) which includes that inventory in products that it...
XXX Corporation acquired 80% of the outstanding shares of United Company on June 1, 2020 for...
XXX Corporation acquired 80% of the outstanding shares of United Company on June 1, 2020 for P3,517,500. United Company’s stockholders equity components at the end of this year as follows: Ordinary shares, P100 par, P1,500,000, Share premium P675,000 and Retained earnings P1,335,000. Non-controlling interest is measured at fair value and the fair value is P705,000. The assets of united were fairly valued, except for inventories, which are overstated by P66,000 and equipment which was understated by P90,000. Remaining useful life...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT