On 1 July 2018 Pumba Ltd acquired 85% of the shares in Timon Ltd. The...
70.2K
Verified Solution
Link Copied!
Question
Accounting
On 1 July 2018 Pumba Ltd acquired 85% of the shares in Timon Ltd. The equity of Timon Ltd at 1 July 2018 consisted of the following:
Share capital $902,000
Retained earnings $550,000
All identifiable net assets of Timon Ltd were recorded at fair value except for the carrying amount of equipment which was $150,000 lower than fair value. The remaining useful life of the equipment is 5 years.
Assuming that Timon Ltd reported a net profit of $275,000 at 30 June 2019. What is the NCI share of profit (hint: after the appropriate adjustment have been made) at 30 June 2019?
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
