Question
In: Accounting
Below are the statements of comprehensive income of Mycro, its subsidiary Macro and associates Tycro at...
Below are the statements of comprehensive income of Mycro, its
subsidiary Macro and
associates Tycro at 31 December 2017. Mycro, Rick and Brads are
public limited companies.
| Mycro | Macro | Tycro |
| $’000 | $’000 | $’000 |
| Revenue | 500 | 150 | 70 |
| Cost of Sales | (270) | (80) | (30) |
| Gross Profit | 230 | 70 | 40 |
| Other Expenses | (150) | (20) | (15) |
| Finance Income | 15 | 10 | - |
| Finance Cost | (20) | - | (10) |
| Profit before tax | 75 | 60 | 15 |
| Income tax expense | (25) | (15) | (5) |
| Profit for the year | 50 | 45 | 10 |
| Other Comprehensive Income: |
| Gains on property revaluation, net of tax | 20 | 10 | 5 |
| Total Comprehensive Income for the year |
70 | 55 | 15 |
You are also given the following information:
1. Mycro acquired 80,000 share in Macro for $188,000 3 years ago
when Macro had a credit balance on its reserves of $40,000. Macro
has $100,000 $1 ordinary shares.
2. Mycro acquired 40,000 shares in Tycro for $60,000 for $60,000
Tycro has 100,000 $1 ordinary shares.
3. During the year Macro sold some goods to Mycro for $66,000 (cost
$48,000). None of the goods sold by the year end.
4. Group policy is to measure non-controlling interest at
acquisition at fair value. The fair value of the non-controlling
interes in Macro at acquisition was $40,000. An impairment test
carried out at year end resulted in $15,000 of the recognized
goodwill relating to Macro being written off and recognition of
impairment losses of $2400 relating to the investment in Tycro.
Required:
Prepare the consolidated statement of Comprehensive
Income for the year ended 31 December
2017 for Mycro Group, incorporating its associate.
Solutions
ekkarill92 answered 7 months agoRelated Solutions
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addiitonal information:
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Following are separate income statements for Austin, Inc., and its 80 percent owned subsidiary, Rio Grande...
Following are separate income statements for Austin, Inc., and
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a consolidated statement for the business combination as a
whole.
Austin
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$
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$
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$
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Following are separate income statements for Austin, Inc., and its 80 percent owned subsidiary, Rio Grande...
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a consolidated statement for the business combination as a
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$
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Cost of goods sold
413,000
313,000
726,000
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$
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Consolidated net income
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The following separate income statements are for Burks Company and its 80 percent–owned subsidiary, Foreman Company:...
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$
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)
Expenses
344,000
235,000
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Equity earnings of
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0
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$
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$
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Cost of goods sold
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315,000
730,000
Operating expenses
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76,000
232,000
Equity in earnings of Rio Grande
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Individual company net income
$
(291,000
)
$
(139,000
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Consolidated net income
$
(313,000
)...
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Equity earnings of
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