Group Consolidations

SCENARIO: On 1 January 20X5, Horizon Renewables (a public utility) acquired 80% of the equity share capital of WindTech Innovations (a tech startup) for $5,000,000. Non-controlling interest (NCI) is measured at fair value, which was $1,100,000 at acquisition. WindTech's net assets at acquisition were $4,500,000 (which included a fair value uplift on patents of $500,000). During the year, Horizon sold turbines to WindTech for $800,000 at a 25% mark-up on cost. Half of these remain in inventory at year-end (31 Dec 20X5). Horizon's receivables include $150,000 due from WindTech, but WindTech's payables show $100,000 due to Horizon (the difference is cash in transit). WindTech's profit for the year was $600,000 (assume no extra depreciation on the patent). Calculate the Goodwill arising on acquisition. (Enter the number only)

SCENARIO: On 1 January 20X5, Horizon Renewables acquired 80% of WindTech Innovations for $5,000,000. NCI fair value was $1,100,000. WindTech's net assets at acquisition were $4,500,000 (including a fair value uplift on patents of $500,000). During the year, Horizon sold turbines to WindTech for $800,000 at a 25% mark-up on cost. Half remain in inventory at year-end. Horizon's receivables include $150,000 due from WindTech; WindTech's payables show $100,000 due to Horizon. WindTech's profit for the year was $600,000. What was the book value of WindTech's net assets immediately before the fair value uplift on patents? (Enter the number only)

SCENARIO: On 1 January 20X5, Horizon Renewables acquired 80% of WindTech Innovations for $5,000,000. NCI fair value was $1,100,000. WindTech's net assets at acquisition were $4,500,000 (including a fair value uplift on patents of $500,000). During the year, Horizon sold turbines to WindTech for $800,000 at a 25% mark-up on cost. Half remain in inventory at year-end. Horizon's receivables include $150,000 due from WindTech; WindTech's payables show $100,000 due to Horizon. WindTech's profit for the year was $600,000. How is the $500,000 fair value uplift on patents treated in the consolidated statement of financial position at year-end?

SCENARIO: On 1 January 20X5, Horizon Renewables acquired 80% of WindTech Innovations for $5,000,000. NCI fair value was $1,100,000. WindTech's net assets at acquisition were $4,500,000 (including a fair value uplift on patents of $500,000). During the year, Horizon sold turbines to WindTech for $800,000 at a 25% mark-up on cost. Half remain in inventory at year-end. Horizon's receivables include $150,000 due from WindTech; WindTech's payables show $100,000 due to Horizon. WindTech's profit for the year was $600,000. Calculate the unrealized profit (PUP) in inventory at year-end. (Enter the number only)

SCENARIO: On 1 January 20X5, Horizon Renewables acquired 80% of WindTech Innovations for $5,000,000. NCI fair value was $1,100,000. WindTech's net assets at acquisition were $4,500,000 (including a fair value uplift on patents of $500,000). During the year, Horizon sold turbines to WindTech for $800,000 at a 25% mark-up on cost. Half remain in inventory at year-end. Horizon's receivables include $150,000 due from WindTech; WindTech's payables show $100,000 due to Horizon. WindTech's profit for the year was $600,000. Which entity's retained earnings are reduced by the provision for unrealized profit (PUP)?

SCENARIO: On 1 January 20X5, Horizon Renewables acquired 80% of WindTech Innovations for $5,000,000. NCI fair value was $1,100,000. WindTech's net assets at acquisition were $4,500,000 (including a fair value uplift on patents of $500,000). During the year, Horizon sold turbines to WindTech for $800,000 at a 25% mark-up on cost. Half remain in inventory at year-end. Horizon's receivables include $150,000 due from WindTech; WindTech's payables show $100,000 due to Horizon. WindTech's profit for the year was $600,000. If Horizon's individual inventory is $2,000,000 and WindTech's individual inventory is $1,000,000, what is the consolidated inventory figure? (Enter the number only)

SCENARIO: On 1 January 20X5, Horizon Renewables acquired 80% of WindTech Innovations for $5,000,000. NCI fair value was $1,100,000. WindTech's net assets at acquisition were $4,500,000 (including a fair value uplift on patents of $500,000). During the year, Horizon sold turbines to WindTech for $800,000 at a 25% mark-up on cost. Half remain in inventory at year-end. Horizon's receivables include $150,000 due from WindTech; WindTech's payables show $100,000 due to Horizon. WindTech's profit for the year was $600,000. Calculate the amount of cash in transit between the two companies at year-end. (Enter the number only)

SCENARIO: On 1 January 20X5, Horizon Renewables acquired 80% of WindTech Innovations for $5,000,000. NCI fair value was $1,100,000. WindTech's net assets at acquisition were $4,500,000 (including a fair value uplift on patents of $500,000). During the year, Horizon sold turbines to WindTech for $800,000 at a 25% mark-up on cost. Half remain in inventory at year-end. Horizon's receivables include $150,000 due from WindTech; WindTech's payables show $100,000 due to Horizon. WindTech's profit for the year was $600,000. If Horizon's individual trade receivables are $3,000,000 and WindTech's are $1,500,000, what is the consolidated trade receivables figure? (Enter the number only)

SCENARIO: On 1 January 20X5, Horizon Renewables acquired 80% of WindTech Innovations for $5,000,000. NCI fair value was $1,100,000. WindTech's net assets at acquisition were $4,500,000 (including a fair value uplift on patents of $500,000). During the year, Horizon sold turbines to WindTech for $800,000 at a 25% mark-up on cost. Half remain in inventory at year-end. Horizon's receivables include $150,000 due from WindTech; WindTech's payables show $100,000 due to Horizon. WindTech's profit for the year was $600,000. If Horizon's individual trade payables are $2,500,000 and WindTech's are $1,200,000, what is the consolidated trade payables figure? (Enter the number only)

SCENARIO: On 1 January 20X5, Horizon Renewables acquired 80% of WindTech Innovations for $5,000,000. NCI fair value was $1,100,000. WindTech's net assets at acquisition were $4,500,000 (including a fair value uplift on patents of $500,000). During the year, Horizon sold turbines to WindTech for $800,000 at a 25% mark-up on cost. Half remain in inventory at year-end. Horizon's receivables include $150,000 due from WindTech; WindTech's payables show $100,000 due to Horizon. WindTech's profit for the year was $600,000. What is the Non-Controlling Interest (NCI) share of WindTech's post-acquisition profit for the year? (Enter the number only)

SCENARIO: On 1 January 20X5, Horizon Renewables acquired 80% of WindTech Innovations for $5,000,000. NCI fair value was $1,100,000. WindTech's net assets at acquisition were $4,500,000 (including a fair value uplift on patents of $500,000). During the year, Horizon sold turbines to WindTech for $800,000 at a 25% mark-up on cost. Half remain in inventory at year-end. Horizon's receivables include $150,000 due from WindTech; WindTech's payables show $100,000 due to Horizon. WindTech's profit for the year was $600,000. Calculate the closing value of the Non-Controlling Interest (NCI) to be shown in the consolidated statement of financial position at 31 Dec 20X5. (Enter the number only)

SCENARIO: On 1 January 20X5, Horizon Renewables acquired 80% of WindTech Innovations for $5,000,000. NCI fair value was $1,100,000. WindTech's net assets at acquisition were $4,500,000 (including a fair value uplift on patents of $500,000). During the year, Horizon sold turbines to WindTech for $800,000 at a 25% mark-up on cost. Half remain in inventory at year-end. Horizon's receivables include $150,000 due from WindTech; WindTech's payables show $100,000 due to Horizon. WindTech's profit for the year was $600,000. If Horizon's individual revenue is $15,000,000 and WindTech's is $5,000,000, what is the consolidated revenue figure? (Enter the number only)

SCENARIO: On 1 January 20X5, Horizon Renewables acquired 80% of WindTech Innovations for $5,000,000. NCI fair value was $1,100,000. WindTech's net assets at acquisition were $4,500,000 (including a fair value uplift on patents of $500,000). During the year, Horizon sold turbines to WindTech for $800,000 at a 25% mark-up on cost. Half remain in inventory at year-end. Horizon's receivables include $150,000 due from WindTech; WindTech's payables show $100,000 due to Horizon. WindTech's profit for the year was $600,000. If Horizon's individual cost of sales is $8,000,000 and WindTech's is $3,000,000, what is the consolidated cost of sales figure? (Enter the number only)

SCENARIO: On 1 January 20X5, Horizon Renewables acquired 80% of WindTech Innovations for $5,000,000. NCI fair value was $1,100,000. WindTech's net assets at acquisition were $4,500,000 (including a fair value uplift on patents of $500,000). During the year, Horizon sold turbines to WindTech for $800,000 at a 25% mark-up on cost. Half remain in inventory at year-end. Horizon's receivables include $150,000 due from WindTech; WindTech's payables show $100,000 due to Horizon. WindTech's profit for the year was $600,000. How is the $50,000 cash in transit treated in the consolidated statement of financial position?

SCENARIO: On 1 January 20X5, Horizon Renewables acquired 80% of WindTech Innovations for $5,000,000. NCI fair value was $1,100,000. WindTech's net assets at acquisition were $4,500,000 (including a fair value uplift on patents of $500,000). During the year, Horizon sold turbines to WindTech for $800,000 at a 25% mark-up on cost. Half remain in inventory at year-end. Horizon's receivables include $150,000 due from WindTech; WindTech's payables show $100,000 due to Horizon. WindTech's profit for the year was $600,000. If Horizon had only acquired 30% of WindTech's shares (and had no other control mechanisms), what accounting method would be used for the investment?