166 Paper F7 Answers to Examples September/December 2016 answEr ExamplE 7 to $ Goodwill (W2) 35,000 Other net assets (60 + 190) 250,000 285,000 70,000 $1 Equity shares Retained earnings (W3) 132,000 NC Interest (W4) 83,000 285,000 60% 40% Cost of investment 100,000 Nci investment valuation 55,000 155,000 Net assets @ doa $1 Equity shares 80,000 Retained earnings 40,000 120,000 35,000 Goodwill W3 Consolidated retained earnings Ivona Guido per q 90,000 110,000 - pre acq 40,000 ... post acq 70,000 60% our share 42,000 132,000 W4 NCI (40%) Value @ doa 55,000 Share of S post acq ret’d 40% × (110,000 - 40,000) 28,000 83,000 answEr ExamplE 8 to $ Goodwill (W2) 32,800 Other assets (60 + 190) 250,000 282,800 70,000 $1 Equity shares Retained earnings (W3) 132,000 Nci (W4) 80,800 282,800
166 Paper F7 Answers to Examples September/December 2016 answEr to ExamplE 7 $ Goodwill (W2) 35,000 Other net assets (60 + 190) 250,000 285,000 $1 Equity shares 70,000 Retained earnings (W3) 132,000 NC Interest (W4) 83,000 285,000 60% 40% Cost of investment 100,000 Nci investment valuation 55,000 155,000 Net assets @ doa $1 Equity shares 80,000 Retained earnings 40,000 120,000 Goodwill 35,000 W3 Consolidated retained earnings Ivona Guido per q 90,000 110,000 - pre acq 40,000 ... post acq 70,000 our share 42,000 60% 132,000 W4 NCI (40%) Value @ doa 55,000 Share of S post acq ret’d 40% × (110,000 - 40,000) 28,000 83,000 answEr to ExamplE 8 $ Goodwill (W2) 32,800 Other assets (60 + 190) 250,000 282,800 $1 Equity shares 70,000 Retained earnings (W3) 132,000 Nci (W4) 80,800 282,800
ACCA_F7_S16_Notes.docx