assign # 2 - Question #3

[Helene Lapierre]

Hi everyone

 

I have finished question #3 and I think that it works - at least it all balances

 

let me know what you think...

 

Helene

[KevinM]

Does this mean you have B and C done

I have this as ending numbers

B. 15,000 and 85,000

C. 202,500 and 687,500

>  assign 2 question 3.xlsx
> 22KViewDownload

[Ruby Lal]

Hi Helene,

I noticed that you started your year at July 1 Year 1 in the text it says Pearl purchased 75% of Silver on July 1, Year 2 - so does that not mean we start with Year 2 not 1?

[KevinM]

Thanks - I missed that too - now my numbers look right


Does this look right for

Part B. 15,000 and 85,000

Part C. 202,500 and 687,500

On Jul 25, 8:31 pm, Ruby Lal <confuzeds...@gmail.com> wrote:
> Hi Helene,
>
> I noticed that you started your year at July 1 Year 1 in the text it says
> Pearl purchased 75% of Silver on July 1, Year 2 - so does that not mean we
> start with Year 2 not 1?
>
> On Mon, Jul 25, 2011 at 5:50 PM, Helene Lapierre

> <lenny.lapie...@gmail.com>wrote:

>
>
>
> > Hi everyone
>
> > I have finished question #3 and I think that it works - at least it all
> > balances
>
> > let me know what you think...
>

> > Helene- Hide quoted text -
>
> - Show quoted text -

[lenny.l...@gmail.com]

I have b and c done as well - I followed module 6 self test question 2 - for b and c
Sent from my BlackBerry® wireless device

[lenny.l...@gmail.com]

I believe that the question has it starting in mid year - it may be that I have to fix the headings - or that I have taken too much amortization

Sent from my BlackBerry® wireless device

---

From: Ruby Lal <confuz...@gmail.com>

Sender: fa4-sum...@googlegroups.com

Date: Mon, 25 Jul 2011 20:31:12 -0400

To: <fa4-sum...@googlegroups.com>

ReplyTo: fa4-sum...@googlegroups.com

Subject: Re: assign # 2 - Question #3

[Ruby Lal]

yes mid year July but Year 2

[lenny.l...@gmail.com]

So do you think that I have taken too much amortization?

Sent from my BlackBerry® wireless device

---

From: Ruby Lal <confuz...@gmail.com>

Sender: fa4-sum...@googlegroups.com

Date: Mon, 25 Jul 2011 21:06:07 -0400

[Ruby Lal]

yes i started at year 2 i  have 1 less years of amortization.

[lenny.l...@gmail.com]

Thanks I will fix that in the morning

Sent from my BlackBerry® wireless device

---

From: Ruby Lal <confuz...@gmail.com>

Sender: fa4-sum...@googlegroups.com

Date: Mon, 25 Jul 2011 21:08:33 -0400

[Ruby Lal]

Part B i got the same Part C i am a bit lost on what figures to use in the example the goodwill is $1,010,000 but the PPD is $1,005,000 where is the additional $5,000 coming from?

[lenny.l...@gmail.com]

You take the ,NCI % of the goodwill impairment and the GW Balance sheet and deduct the amount

Sent from my BlackBerry® wireless device

---

From: Ruby Lal <confuz...@gmail.com>

Sender: fa4-sum...@googlegroups.com

Date: Mon, 25 Jul 2011 21:39:01 -0400

To: <fa4-sum...@googlegroups.com>

ReplyTo: fa4-sum...@googlegroups.com

Subject: Re: assign # 2 - Question #3

[Ruby Lal]

This is what I have is this right?

 c)  Goodwill and NCI on BS  

Goodwill under entity theory        1,200,000 

 Less:   NCI share (25%)            300,000 

 Goodwill under parent company extension theory            900,000 

 NCI on balance sheet under entity theory            770,000 

 Less:  NCI's share of goodwill (25%)            300,000 

 NCI on balance sheet under parent company extension theory            470,000   

[KevinM]

I had to change my C answer

It is now

202,500 and 702,500 (does this make sense)

> > > - Show quoted text -- Hide quoted text -

[lenny.l...@gmail.com]

You're numbers don't look familiar - I will send you my copy first thing in the morning - it might be more clear then

Sent from my BlackBerry® wireless device

---

From: Ruby Lal <confuz...@gmail.com>

Sender: fa4-sum...@googlegroups.com

Date: Mon, 25 Jul 2011 22:05:52 -0400

[lenny.l...@gmail.com]

Again the amount doesn't look familiar
You need to take the year 3 GW impairment amount and deduct NCI and the same GW-B/S amount and deduct NCI %

Sent from my BlackBerry® wireless device

-----Original Message-----
From: KevinM <kevinma...@rogers.com>

Sender: fa4-sum...@googlegroups.com
Date: Mon, 25 Jul 2011 19:07:44
To: FA4 Summer 2011<fa4-sum...@googlegroups.com>

Reply-To: fa4-sum...@googlegroups.com
Subject: Re: assign # 2 - Question #3

[Ruby Lal]

i see that you are taking the balance remaining at YR 6 goodwill of $270,000 and calculating it that way i think i figured it out my new numbers match yours!

[Jeff & Renee Renaud]

Here’s what I have not sure if it’s right.  Does anyone else have the same?

 

b)
Goodwill impairment loss under entity theory (fair value enterprise approach)							360,000
Less NCI's share 25%							-            90,000
Goodwill impairment loss under identifiable net assets approach							270,000
NCI on income statement under entity theory							80,000
Add NCI's share of goodwill impairment 25%							22,500
NCI on income statement under identifiable net assets approach							102,500
c)
Goodwill under entity theory							270,000
Less NCI's share 25%							-            67,500
Goodwill under identifiable net assets approach							202,500

NCI on balance sheet under entity theory							770,000

Less NCI's share of goodwill 25%							-            67,500
NCI on balance sheet under identifiable net assets approach							702,500

[KevinM]

shouldn't it be year 6

[Ruby Lal]

The actual loss year 6 is $20,000 i think you are using the total goodwill amount of $360,000

[lenny.l...@gmail.com]

Sorry whatever year is the last year that we have numbers for - sorry not at my computer

[Jeff & Renee Renaud]

That's what I have. My b answers are different. 270000 & 102500

-----Original Message-----
From: fa4-sum...@googlegroups.com
[mailto:fa4-sum...@googlegroups.com] On Behalf Of KevinM
Sent: July-25-11 10:08 PM
To: FA4 Summer 2011
Subject: Re: assign # 2 - Question #3

[Jeff & Renee Renaud]

Your right.  I changed it.  What about the rest of the numbers does anyone else have the same?

15000    102500  202500  702500