Assignment 3 Question 1

[Katherine]

I thought it would be good to compare the number we get... so far I
have under the integrated subsidiary:
buildings - net 3,418,500
Goodwill - 108,000
Net income excluding OCI - 180,000.

Anyone else?

[Renee]

I've been struggling with this but here is what I have for buildings:

White FP2,700,000*0.30=810,000*.70=$567,000
Unamortized PPD building (100000-(10000*6))*.3*.7=8400
Black $3000000
Total $3,575,400

Everyone on the blackboard has $3,558,000
Am I looking this wrong?

[Renee]

When I'm looking at example 8.6-1 and self test Q6 they aren't taking
the parent's ownership into account. Does anyone know why?

> > Anyone else?- Hide quoted text -
>
> - Show quoted text -

[Renee]

ignore that I figured it out. the parent's ownership is on p602

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

[Ruby]

for goodwill i have the same as you 108,000 but i noticed on the board
a lot of people have 144,000 - per the text book pg 577 gw is valued
at market using the current rate - anyone also agree and get the same
amount?

On Aug 5, 1:22 pm, Katherine <kathompson.em...@gmail.com> wrote:

[Jeff & Renee Renaud]

I've reworked my numbers and have buildings 3418500 and goodwill 108000 for
foreign operations.
Buildings 3558000 and goodwill 144000 for integrated subsidiary

How did you get net income?

[Stella]

How did you get those numbers? Mine is different. I can not figure out
why. Could you help me with that?
Thanks!

[Jeff & Renee Renaud]

Hope this helps.

b) Foreign Operations
i) Building - net White $405,000
2,700,000*0.15=405,000
Unamortized PPD $13,500
90,000*0.15=13,500
Black $3,000,000

$3,418,500

ii) Goodwill 108,000
720,000*0.15=108,000


iii) Depreciation expense - Buildings White $55,800
(300,000*0.18)+(10,000*0.18)=55,800
Black $200,000

$255,800

[Renee]

Was anyone able to come up with the net income (excluding other
comprehensive income) from the webinar 181,500? The closest I can
come to is 181,700.

What are people getting for NCI I/S & NCI B/S?

[Ruby Lal]

I am getting184,100 - how are you getting 181,700?

iv) Net income (excluding other comprehensive income)
Black's income before foreign exchange			150,000
Less: dividend income (FP 100,000*.70*.17)			(11,900)
			138,100
White's income before foreign exchange  - given		30,000
Exchange gain White's sepearte F/S - given		50,000
Amortization of acquisition difference (FP 90,000*.20)		(18,000)
Loss on goodwill (80,000*.20)		(16,000)	46,000
			184,100

[adira...@gmail.com]

Ruby the second part of calcs should be as follows (30000+50000-2000-16000)*70% add to 138100 that you already have.
Leah

Sent from my BlackBerry device on the Rogers Wireless Network

---

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

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

Date: Mon, 8 Aug 2011 13:29:13 -0400

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

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

[Ruby Lal]

Got it thanks! 

[Ruby Lal]

Also for goodwill do you have $108,000 or $144,000 -- i have $108,000 as i recorded goodwill at fair value since there was impairment. 

[Ruby]

NCI BS i have $18,600 and NIC B/S i have $122,100 not sure if its
correct

[Jeff & Renee Renaud]

Apparently 18,600 is correct based on the network.

How did you calculate it? I'm struggling with White's translated income.

So far I have:

White translated income ????
Less amort PPD 2000 (10000*0.20)
Less goodwill impairment 16000 (80000*0.20)
White's adj
NCI 30% 30%
NCI I/S

[Ruby Lal]

part a or b for income?

if you look at 8.6 - they use the sub's calculated income 9720*.10 so i did the same here 

a)

 vi) Non-controlling interest on the income statement Net income, White as calculated above             62,000 

 NCI's share 30%               18,600   

[Stella]

Thanks very much!
how did you get the goodwill 720,000?

[Jeff & Renee Renaud]

Goodwill is 800,000-80,000=720,000

[Ruby Lal]

what did you get for b)vii) did you deduct the OCI for the translation only or did you include the difference from the PPD?

[stacy23@ hotmail.com]

I deducted both (PPD and OCI from translation White Co.

Stacia

Sent from my BlackBerry® smartphone

-----Original Message-----
From: Ruby Lal <confuz...@gmail.com>
Date: Tue, 9 Aug 2011 02:51:55
To: <fa4-sum...@googlegroups.com>
Subject: Re: Assignment 3 Question 1

what did you get for b)vii) did you deduct the OCI for the translation only or did you include the difference from the PPD?

On Mon, Aug 8, 2011 at 10:24 PM, Jeff & Renee Renaud <ren...@bmts.com <mailto:ren...@bmts.com> > wrote:
Goodwill is 800,000-80,000=720,000

-----Original Message-----
From: fa4-sum...@googlegroups.com <mailto:fa4-sum...@googlegroups.com>
[mailto:fa4-sum...@googlegroups.com <mailto:fa4-sum...@googlegroups.com> ] On Behalf Of Stella
Sent: August-08-11 10:12 PM

To: FA4 Summer 2011
Subject: Re: Assignment 3 Question 1

Thanks very much!
how did you get the goodwill 720,000?

On Aug 8, 6:59 am, "Jeff & Renee Renaud" <ren...@bmts.com <mailto:ren...@bmts.com> > wrote:
> Hope this helps.
>
> b)      Foreign Operations                                              
> i)      Building - net  White                   $405,000
> 2,700,000*0.15=405,000  
>                                 Unamortized PPD  $13,500
> 90,000*0.15=13,500      
>                                 Black                   $3,000,000
>
>                                                         $3,418,500
>
> ii)                             Goodwill                 108,000
> 720,000*0.15=108,000    
>
> iii)    Depreciation expense - Buildings                White    $55,800
> (300,000*0.18)+(10,000*0.18)=55,800    
>                                                         Black    $200,000
>
>                                                                 $255,800
>
>
>
>
>
>
>
> -----Original Message-----
> From: fa4-sum...@googlegroups.com <mailto:fa4-sum...@googlegroups.com>
>

> [mailto:fa4-sum...@googlegroups.com <mailto:fa4-sum...@googlegroups.com> ] On Behalf Of Stella

> Sent: August-08-11 12:37 AM
> To: FA4 Summer 2011
> Subject: Re: Assignment 3 Question 1
>
> How did you get those numbers? Mine is different. I can not figure out
> why. Could you help me with that?
> Thanks!
>

> On Aug 7, 11:18 pm, "Jeff & Renee Renaud" <ren...@bmts.com <mailto:ren...@bmts.com> > wrote:
> > I've reworked my numbers and have buildings 3418500 and goodwill 108000
> for
> > foreign operations.
> > Buildings 3558000 and goodwill 144000 for integrated subsidiary
>
> > How did you get net income?
>
> > -----Original Message-----
> > From: fa4-sum...@googlegroups.com <mailto:fa4-sum...@googlegroups.com>
>

> > [mailto:fa4-sum...@googlegroups.com <mailto:fa4-sum...@googlegroups.com> ] On Behalf Of Ruby

> > Sent: August-07-11 11:07 PM
> > To: FA4 Summer 2011
> > Subject: Re: Assignment 3 Question 1
>
> > for goodwill i have the same as you 108,000 but i noticed on the board
> > a lot of people have 144,000 - per the text book pg 577 gw is valued
> > at market using the current rate - anyone also agree and get the same
> > amount?
>

[Ruby Lal]

i got $88,650 for b)vii) is this what you got?

[Stella]

how did you get 800,000?
I still have difficulty to figure out the goodwill in a/ and b and i
was confused..

[Jeff & Renee Renaud]

I calculated the purchase discrepancy at acquisition using FP.

[Helene Lapierre]

I am not getting the right number for goodwill.... can someone show me how they have their number?

lost and confused

Helene

[Ruby Lal]

which part?

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

For part a ii

Sent from my BlackBerry® wireless device

---

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

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

Date: Tue, 9 Aug 2011 12:42:21 -0400

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

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

Subject: Re: Assignment 3 Question 1

[Ruby Lal]

Goodwill Opening is FP 800,000 - impairment is FP 80,000 which leaves us with FP 720,000

historical rate 800,000*.20 = $160,000 impairment 80,000*.20 = 16,000 end balance is $144,000 -- Txt book pg 577   However since there was an impairment it should be listed at fair value so not sure if the impairment loss need to be calculated at 720,000 FP *.15 = 108,000

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

My goodwill opening is way off - how did you get the goodwill FP 800,000

Sent from my BlackBerry® wireless device

---

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

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

Date: Tue, 9 Aug 2011 12:49:48 -0400

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

Ok - I got it. I left out the RE - I need a nap
Helene

Sent from my BlackBerry® wireless device

---

From: lenny.l...@gmail.com

Date: Tue, 9 Aug 2011 16:59:27 +0000

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

ReplyTo: lenny.l...@gmail.com

[Katherine]

Ok, I'm lost on OCI, where can I find an example or something, the
closest I've found is that it is the exchange gain or loss but that's
calculated for us for White... there wouldn't be a gain or loss for
Black because it's not translated... help!

NCI-I/S (b)

NCI - I/S

White's net income 28,800.00
Amortization of PPD -13,500.00
Adjusted Net Income 15,300.00
NCI's 30% interest 30%
NCI - I/S 4,590.00
But no one else seems to get this...

So Net Income is the following:
Net Income

Black's Net Income 150,000.00
Less Dividends -11,900.00
138,100.00
White's Net Income 28,800.00
White's Exchange gain -
Amortization of PPD -13,500.00
15,300.00
70%
10,710.00
Net Income 148,810.00
NCI 4,590.00
Consolidated Net Income 153,400.00

Again, which no one else gets.

For a)

NCI - B/S

White's Shareholder's equity 1,160,000.00
Unamortized PPD 810,000.00
Adjusted equity 1,970,000.00
NCI ownership 30%
NCI - B/S 591,000.00
118,200.00 , after translation, but everyone seems to agree on
118,500... which is not what I have... help please!

On Aug 9, 2:40 pm, lenny.lapie...@gmail.com wrote:
> Ok - I got it. I left out the RE - I need a nap
> Helene
> Sent from my BlackBerry® wireless device
>
>
>
> -----Original Message-----
> From: lenny.lapie...@gmail.com
> Date: Tue, 9 Aug 2011 16:59:27

> To: <fa4-sum...@googlegroups.com>
>
> Reply-To: lenny.lapie...@gmail.com

> Subject: Re: Assignment 3 Question 1
>
> My goodwill opening is way off - how did you get the goodwill FP 800,000
> Sent from my BlackBerry® wireless device
>

> -----Original Message-----
> From: Ruby Lal <confuzeds...@gmail.com>
> Sender: fa4-sum...@googlegroups.com
> Date: Tue, 9 Aug 2011 12:49:48
> To: <fa4-sum...@googlegroups.com>
> Reply-To: fa4-sum...@googlegroups.com
> Subject: Re: Assignment 3 Question 1
>
> Goodwill Opening is FP 800,000 - impairment is FP 80,000 which leaves us
> with FP 720,000
>
> historical rate 800,000*.20 = $160,000 impairment 80,000*.20 = 16,000 end
> balance is $144,000 -- Txt book pg 577   However since there was
> an impairment it should be listed at fair value so not sure if the
> impairment loss need to be calculated at 720,000 FP *.15 = 108,000
>

> On Tue, Aug 9, 2011 at 12:43 PM, <lenny.lapie...@gmail.com> wrote:
>
> > ** For part a ii

>
> > Sent from my BlackBerry® wireless device

> > ------------------------------
> > *From: * Ruby Lal <confuzeds...@gmail.com>
> > *Sender: * fa4-sum...@googlegroups.com
> > *Date: *Tue, 9 Aug 2011 12:42:21 -0400
> > *To: *<fa4-sum...@googlegroups.com>
> > *ReplyTo: * fa4-sum...@googlegroups.com
> > *Subject: *Re: Assignment 3 Question 1
>
> > which part?
>
> > On Tue, Aug 9, 2011 at 12:40 PM, Helene Lapierre <lenny.lapie...@gmail.com

> > > wrote:
>
> >> I am not getting the right number for goodwill.... can someone show me how
> >> they have their number?
> >> lost and confused
> >> Helene
>

> >> On Fri, Aug 5, 2011 at 1:22 PM, Katherine <kathompson.em...@gmail.com>wrote:
>
> >>> I thought it would be good to compare the number we get... so far I
> >>> have under the integrated subsidiary:
> >>> buildings - net 3,418,500
> >>> Goodwill - 108,000
> >>> Net income excluding OCI - 180,000.
>

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

I haven't got to OCI - but for part b white's translated Net income in CDN is given as 30,000

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

Katherine there is a thread on blackboard - I am just reviewing it now - let me know if you can't find it

Helene
Sent from my BlackBerry® wireless device

-----Original Message-----
From: Katherine <kathomps...@gmail.com>
Sender: fa4-sum...@googlegroups.com

Date: Tue, 9 Aug 2011 13:06:11

[Katherine]

Unless it's new within the last hour, I haven't found any that help,
mostly it's the different ending numbers, which I have, but different
ones. As for White's Net income in CDN, I saw a thread that said that
was used for a but for b we had to calculate it.

Also, if someone can tell me if I'm on the right track for OCI I would
appreciate it, I have 100,100:

Loss on translation of Net Assets

Net Assets
Retained Earnings 900,000.00
Common stock 200,000.00
Dec 31 Y5 1,100,000.00 0.20 220,000.00

Net Income 160,000.00 0.18 28,800.00

Dividends 100,000.00 0.17 17,000.00
Calculated 231,800.00

Actual
Net Assets 1,160,000.00 0.15 174,000.00
57,800.00

plus

Translation Adjustment
Dec 31, Y5 balance 180,000.00
Amortization 16,200.00
Calculated balance 163,800.00
Actual balance 121,500.00
OCI (loss) -42,300.00

Thanks!

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

[KevinM]

Can you let me know how you are calculating OCI?

On Aug 8, 7:03 am, Renee <renee...@gmail.com> wrote:

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

[Katherine]

It's at the bottom of my last post, translation of net assets as well
as the PPD, there's an example in the pdf, page 38 of module 8, though
we don't know net assets but I thought it should be the same as
retained earnings + net income. Thoughts?

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

Ya I haven't found anything that is making it any clearer (bad english) but I have moved on to question #2

Sent from my BlackBerry® wireless device

-----Original Message-----
From: Katherine <kathomps...@gmail.com>
Sender: fa4-sum...@googlegroups.com
Date: Tue, 9 Aug 2011 15:03:35
To: FA4 Summer 2011<fa4-sum...@googlegroups.com>
Reply-To: fa4-sum...@googlegroups.com

[Ruby Lal]

Katherine, i have the same as you --- net assets is the shareholders equity

[Jeff & Renee Renaud]

Hope that helps. Any idea on NCI-B/S for a and b?

Other comprehensive income
Translation adjustment on PPD and Goodwill impairment

PPD Dec 31 Yr 5 Bal $180,000 900,000*0.20=180,000

Less Amort PPD ($16,200) 90,000*0.18=16,200

Calculated bal $163,800
Actual bal Dec 31 Yr 6 $121,500
(900,000*0.15)-(90,000*0.15)=121,500
OCI ($42,300)

[Jeff & Renee Renaud]

Katherine do you have the NCI B/S for part a and b done?

[Stella]

for part a and b.... I have same issue....
how did you get the number for common stock and retained earnings?

On Aug 9, 12:42 pm, Ruby Lal <confuzeds...@gmail.com> wrote:
> which part?
>
> On Tue, Aug 9, 2011 at 12:40 PM, Helene Lapierre

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

>
>
>
>
>
>
>
> > I am not getting the right number for goodwill.... can someone show me how
> > they have their number?
> > lost and confused
> > Helene
>

[Katherine]

for OCI, common stock and retained earnings are given, for the
beginning amounts, the ending amounts, common stock is the same and I
calculated retained earnings

Retained Earnings
White
Beginning of the year 900,000.00
Net income 160,000.00
1,060,000.00
Dividends 100,000.00
Ending Retained Earnings 960,000.00

NCI - B/S

White's Shareholder's equity 1,160,000.00
Unamortized PPD 810,000.00
Adjusted equity 1,970,000.00
NCI ownership 30%
NCI - B/S 591,000.00

using the two different year end exchange rates. people in all threads
seem to agree on the NCI B/S ones.
NCI on the BS 118,200.00 & 88,650.00

[Stella Chen]

Thank you 

Stella 

> Date: Tue, 9 Aug 2011 20:25:10 -0700

> Subject: Re: Assignment 3 Question 1

> From: kathomps...@gmail.com
> To: fa4-sum...@googlegroups.com