Maui Ltd. has the following SFP at December 31, 20X5.
On January 1, 20X6, Oahu Ltd., whose assets are composed entirely of share investments and cash, paid $371,000 for 70% of the outstanding shares of Maui Ltd. The current fair values of the net assets of Maui Ltd. on January 1, 20X6, were:
Oahu Ltd. had the following shareholders equity on January 1, 20X6:
Common shares………………………………$ 960,000
Retained earnings……………………………1,420,000
………………………………………………………$2,380,000
Required
1. Assume that a consolidated SFP is prepared on January 1, 20X6. Calculate the dollar amounts for the following items as they would appear on that consolidated SFP under the entity method:
i. goodwill;
ii. land;
iii. equipment;
iv. common shares;
v. retained earnings; and
vi. NCI.
2. What does NCI represent on the consolidated SFP?
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