In preparing the Subsidiary company's Income distribution schedule (IDS), how is the total amount dis controlling interest calculated? O (Internally generated Subsidiary's net income + Other adjustments (if any) - Full Amortization of excess from value schedule] x Non-controlling interest (%) O (Internally generated Subsidiary's net income - Füll Amortization of excess from value schedule] x Non- controlling interest (%). O (Internally generated Subsidiary's net income + Other adjustments (if any)] x Non-controlling interest (%) O [Internally generated Subsidiary's net income - Other adjustments (if any) + Full Amortization of excess] x Non-nontrolling interest (%)

In preparing the Subsidiary company's Income distribution schedule (IDS), how is the total amount dis controlling interest calculated? O (Internally generated Subsidiary's net income + Other adjustments (if any) - Full Amortization of excess from value schedule] x Non-controlling interest (%) O (Internally generated Subsidiary's net income - Füll Amortization of excess from value schedule] x Non- controlling interest (%). O (Internally generated Subsidiary's net income + Other adjustments (if any)] x Non-controlling interest (%) O [Internally generated Subsidiary's net income - Other adjustments (if any) + Full Amortization of excess] x Non-nontrolling interest (%)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question 4 Assume that Company A acquires 70 per cent of Company B for a cash price of $14 million when the share capital and reserves of Company B are: Share capital $8 million Retained earnings $2 million $10 million 1)What amount of goodwill will be shown in the consolidated statement of financial position pursuant to AASB 3 assuming that any non-controlling interest in the acquirer is measured at fair value? 2)What amount of goodwill will be shown in the consolidated statement of financial position pursuant to AASB 3 assuming that any non-controlling interest in the acquirer is measured at the non-controlling interest’s proportionate share of the acquiree’s identifiable net assets? 3)Pass the necessary consolidation journal entries and the journal entries to record the non-controlling interest if the non-controlling interest in the…