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 1 year agoRelated Solutions
The separate condensed balance sheets and income statements of Purl Corp. and its wholly owned subsidiary,...
The separate condensed balance sheets and income statements of
Purl Corp. and its wholly owned subsidiary, Scott Corp., are as
follows:
BALANCE SHEETS
December 31, 20X0
Purl
Scott
Assets
Current assets
Cash
$80,000
$60,000
Accounts receivable (net)
$140,000
$25,000
Inventories
$90,000
$50,000
Total current assets
$310,000
$135,000
Property plant, and equipment (net)
$625,000
$280,000
Investment in Scott (equity method)
$390,000
----
Total assets
$1,325,000
$415,000...
Separate income statements of quail corp and its 80% owned subsidiary, Savannah corp, for 2016 are...
Separate income statements of quail corp and its 80% owned
subsidiary, Savannah corp, for 2016 are as follows:
Quail Savannah
sales rev 800,000 300,000
gain on equipment 35,000
cost of sales (400000) (160000)
other expenses (265000) (60000)
separate incomes 135000 115000
addiitonal information:
1. quail acquired its 80% interest in savannah corporation when
the book values were equal to the fair values.
2. the gain on equipment relates to eqiupment with a book value
of 85000 and a 7yr remaining...
Orland Restaurants Inc. reports the following comprehensive income in its 2016 consolidated financial statements ($ in...
Orland Restaurants Inc. reports the
following comprehensive income in its 2016 consolidated financial
statements ($ in millions):
Comprehensive income:
Net earnings
$576.7
Other comprehensive income (loss):
Foreign currency adjustment
(0.3)
Change in fair value of marketable
securities net of tax
(8.4)
Change in fair value of derivatives,
net of tax
(6.6)
Net unamortized gain (loss) arising
during period, including amortization of unrecognized net actuarial
loss, net of taxes
25.6
Other comprehensive income (loss)
10.3
Total comprehensive income
$587.0
In...
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
its 80 percent owned subsidiary, Rio Grande Corporation as well as
a consolidated statement for the business combination as a
whole.
Austin
Rio Grande
Consolidated
Revenues
$
(760,000
)
$
(540,000
)
$
(1,300,000
)
Cost of goods sold
420,000
320,000
740,000
Operating expenses
120,000
66,000
215,000
Equity in earnings of Rio
Grande
(104,000
)
Individual company net
income
$
(324,000
)
$
(154,000
)
Consolidated net income
$
(345,000
)...
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
its 80 percent owned subsidiary, Rio Grande Corporation as well as
a consolidated statement for the business combination as a
whole.
Austin
Rio Grande
Consolidated
Revenues
$
(739,000
)
$
(526,000
)
$
(1,265,000
)
Cost of goods sold
413,000
313,000
726,000
Operating expenses
114,000
83,000
235,000
Equity in earnings of Rio Grande
(70,000
)
Individual company net income
$
(282,000
)
$
(130,000
)
Consolidated net income
$
(304,000
)...
The following separate income statements are for Burks Company and its 80 percent–owned subsidiary, Foreman Company:
The following separate income statements are for Burks Company
and its 80 percent–owned subsidiary, Foreman Company:BurksForemanRevenues$(422,000)$(322,000)Expenses373,000236,000Gain on sale of equipment0(26,000)Equity earnings of
subsidiary(63,000)0Net income$(112,000)$(112,000)Outstanding common shares60,00033,000Additional InformationAmortization expense resulting from Foreman’s excess
acquisition-date fair value is $36,000 per year.Burks has convertible preferred stock outstanding. Each of these
6,000 shares is paid a dividend of $4 per year. Each share can be
converted into four shares of common stock.Stock warrants to buy 14,000 shares of Foreman are also
outstanding. For $10,...
The following separate income statements are for Burks Company and its 80 percent–owned subsidiary, Foreman Company:...
The following separate income statements are for Burks Company
and its 80 percent–owned subsidiary, Foreman Company:
Burks
Foreman
Revenues
$
(420,000
)
$
(320,000
)
Expenses
344,000
235,000
Gain on sale of equipment
0
(25,000
)
Equity earnings of
subsidiary
(62,000
)
0
Net income
$
(138,000
)
$
(110,000
)
Outstanding common shares
60,000
30,000
Additional Information
Amortization expense resulting from Foreman’s excess
acquisition-date fair value is $35,000 per year.
Burks has convertible preferred stock outstanding. Each of these...
Following are separate income statements for Austin, Inc., and its 90 percent owned subsidiary, Rio Grande...
Following are separate income statements for Austin, Inc., and
its 90 percent owned subsidiary, Rio Grande Corporation as well as
a consolidated statement for the business combination as a
whole.
Austin
Rio Grande
Consolidated
Revenues
$
(745,000
)
$
(530,000
)
$
(1,275,000
)
Cost of goods sold
415,000
315,000
730,000
Operating expenses
116,000
76,000
232,000
Equity in earnings of Rio Grande
(77,000
)
Individual company net income
$
(291,000
)
$
(139,000
)
Consolidated net income
$
(313,000
)...
The following separate income statements are for Burks Company and its 80 percent–owned subsidiary, Foreman Company:...
The following separate income statements are for Burks Company
and its 80 percent–owned subsidiary, Foreman Company: Burks Foreman
Revenues $ (448,000 ) $ (348,000 ) Expenses 273,000 249,000 Gain on
sale of equipment 0 (39,000 ) Equity earnings of subsidiary (73,000
) 0 Net income $ (248,000 ) $ (138,000 ) Outstanding common shares
60,000 40,000
Additional Information Amortization expense resulting from
Foreman’s excess acquisition-date fair value is $49,000 per year.
Burks has convertible preferred stock outstanding. Each of these...
The following separate income statements are for Burks Company and its 80 percent–owned subsidiary, Foreman Company:...
The following separate income statements are for Burks Company
and its 80 percent–owned subsidiary, Foreman Company:
Burks
Foreman
Revenues
$
(438,000
)
$
(338,000
)
Expenses
270,000
244,000
Gain on sale of equipment
0
(34,000
)
Equity earnings of
subsidiary
(68,000
)
0
Net income
$
(236,000
)
$
(128,000
)
Outstanding common shares
65,000
40,000
Additional Information
Amortization expense resulting from Foreman’s excess
acquisition-date fair value is $41,000 per year.
Burks has convertible preferred stock outstanding. Each of these...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- The new director of special events at a large university has decided to completely revamp graduation...
- You have just commenced employment at one of Canada’s large retail merchandising companies (Loblaws, Canadian Tire,...
- The separation of a mixture (NH4Cl, NaCl and SiO2) is accomplished by: (1) heating the mixture...
- Compare First Come First Served Scheduling, and Round Robin Scheduling. In your comparison, include discussions of...
- Art 100 Second, trace the subsequent development of art in the East and the West from...
- Share the most popular issue/topic on stock market. This could be a short article or a...
- A random sample of ? measurements was selected from a population with standard deviation ?=16.6 and...
ADVERTISEMENT