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Postum Company
Consolidated Balance Sheet
as at 31 December 2017
Assets
Inventory 100,000
Other current assets 310,000
Investment in AFS/FVOCI 30,000
Land 140,000
Building and equipment 670,000
Accumulated depreciation (175,000)
Goodwill 141,000
Total assets 1,216,000
Income statement
Net sales (550,000) (400,000)
Cost of goods sold 320,000 210,000
Operating expense 130,000 100,000
Dividend income (16,000)
Gain/loss on contingent consideration (11,000)
Net income (127,000) (90,000)
Changes in equity
Retained earnings, beginning (284,000) (230,000) 190,000
Net income (127,000) (90,000)
Dividends declared 50,000 20,000
Retained earnings, ending (361,000) (300,000)
Balance sheet
Inventory 60,000 40,000 5,000
Other current assets 150,000 160,000
Investment in Scriptum 440,000 (280,000) (20,000)
Investment in AFS/FVOCI 30,000
Land 60,000 80,000
Building and equipment 350,000 300,000 20,000
Accumulated depreciation (120,000) (50,000)
Goodwill
Total assets 940,000 560,000
Parity check - -
WPEE 5
WPEE 3 WPEE 0.5 WPEE 2.1 WPEE 2.2 WPEE 4
PAOCI
2,500
16,000
2,000 16,000
500
4,000 2,000
(20,000)
4,000
(5,000)
(136,000) (4,000)
(5,000)
141,000
4,000 2,000
PARE-B Consolidated
(950,000)
530,000
232,500
-
(11,000)
(198,500)
(181,000)
(17,500)
8,000 (310,000)
(181,000)
50,000
(441,000)
(8,000) (88,500)
(17,500)
4,000
(102,000)
100,000
310,000
-
30,000
140,000
670,000
(175,000)
141,000
1,216,000
(190,000)
(25,000)
(50,000)
(100,000)
(365,000)
(100,000)
(200,000)
(441,000)
(8,000)
(102,000)
(851,000)
(1,216,000)
-
Postum Company - WPEEs for 31 December 2017 Dr Cr
Gain to be realized
Final FMV of land 300,000
Provisional FMV of land 216,000
Gain to be realized in profit or loss 84,000
WPEE Computation
Non-controlling
WPEE 1 Parent (80%) Total
interest (20%)
Acquisition date values
Common stock 32,000 8,000 40,000
Other paid-in capital 96,000 24,000 120,000
Retained earnings 152,000 38,000 190,000
280,000 70,000 350,000
Non-controlling
WPEE 2 Parent (80%) Total
interest (20%)
Inventory 4,000 1,000 5,000
Building 16,000 4,000 20,000
20,000 5,000 25,000
Non-controlling
WPEE 3 Parent (80%) Total
interest (20%)
Fair value at acquisition 436,000 80,000 516,000
Fair value of net identifiable assets
Common stock 32,000 8,000 40,000
Other paid-in capital 96,000 24,000 120,000
Retained earnings 152,000 38,000 190,000
Fair market value differences
Inventory 4,000 1,000 5,000
Building (final amount) 16,000 4,000 20,000
Goodwill 136,000 5,000 141,000
Non-controlling
WPEE 2.1 - Inventory Parent (80%) Total
interest (20%)
Realization of FMV excess of inventory
Prior year/s 4,000 1,000 5,000
Current year - - -
4,000 1,000 5,000
Non-controlling
WPEE 4 - Dividend cancellation Parent (80%) Total
interest (20%)
Dividends declared by Scriptum 16,000 4,000 20,000
Non-controlling
WPEE 5 - PAOCI Parent (80%) Total
interest (20%)
Post-acquisition UGL-AFS/FVOCI 2,000 10,000
Acquisition date UGL-AFS/FVOCI - -
Adjustment 2,000 10,000
set up in NCI
Non-controlling
PARE-B Parent (80%) Total
interest (20%)
Beginning retained earnings of Scriptum (2017) 46,000 230,000
Acquisition date retained earnings 38,000 190,000
Adjustment 8,000 40,000
set up in NCI