On July C Ltd purchased of the share capital of D Ltd for $ At that date, shareholders equity of D Ltd was:
$
Share capital
General reserve
Retained earnings
The abridged statement of comprehensive income of both companies for the year ended June were as follows:
C Ltd D Ltd
$ $
Retained earnings July
Operating profit
Interim dividend paid
Proposed dividend
Retained earnings June
Additional information
a The closing inventory of C Ltd included goods of $ bought from D Ltd This inventory originally cost D Ltd $
b C Ltd included in its final accounts the dividends provided by D Ltd
c All dividends are from postacquisition profit.
d The directors have applied the impairment test for goodwill and determined that a writedown of $ is required for consolidation purposes as at June
e The company tax rate is
Required:
Prepare an acquisition analysis assuming the full goodwill method.
Calculate the NCI.
