Book value ( net assets)

Ordinary shares 16,000,000

Accumulated profits 6,400,000
Total 22,400,000
Equipment ( 10.52M-9M) under 1,520,000
Fair value ( net assets) 23,920,000

Partial (23,920,000*20%)
80% 20%
Consideration + NCI 19,000,000 4,784,000
FV net assets - 19,136,000 - 4,784,000
Bargain - 136,000 -

2016 Parent Subsidiary

Net income 3,600,000 1,360,000
Less: ( ( 280000*80%) -224000
Dividend income/Invesment income
Net income from own operations 3,376,000 1,360,000
Bargain 136,000
Direct cost - 45,000
Add (less) amortization of excess
Undervaluation of assets - 304,000
Consolidated net income 3,467,000 1,056,000
Less: ( NINIS) (1056000*20%) - 211,200
Net income attributale to parent 3,467,000 844,800

2017 Parent Subsidiary

Net income 4,400,000 2,040,000
Less: (520000*80%)
Dividend income/Invesment income -416000
Net income from own operations 3,984,000 2,040,000
Add (less) amortization of excess
Undervaluation of assets - 304,000
Consolidated net income 3,984,000 1,736,000
Less: ( NINIS) (1,736,000*20%) - 347,200
Net income attributale to parent 3,984,000 1,388,800
Consolidated retained earnings ( 1st year of acquisition)
Retained earnings beg.-Parent 13,800,000
Add:Net income attributale to parent-2016 4,311,800
Total 18,111,800
Less: Dividend declared-Parent - 880,000
Consolidated retained earnings -2016 17,231,800
Add:Net income attributale to parent-2017 5,372,800
Total 22,604,600
Less: Dividend declared-Parent - 1,560,000
Consolidated retained earnings -2017 21,044,600

NCI beg 4,784,000

Add: ( NINIS)-2016 211,200
Total 4,995,200
Less: NCI's share in the dividend (280000*20%) -56000
NCI end-2016 4,939,200
Add: ( NINIS) 347,200
Total 5,286,400
Less: NCI's share in the dividend (520000*20%) -104000
NCI end-2017 5,182,400
 304,000

920,000*20%)
Total
23,784,000
- 23,920,000
- 136,000

Total
4,960,000
-224000

4,736,000
136,000
- 45,000

- 304,000
4,523,000 211,200.0
- 211,200
4,311,800

Total
6,440,000

- 416,000
6,024,000

- 304,000
5,720,000
- 347,200
5,372,800
Book value ( net assets)
Ordinary shares 2,000,000
Share premium 500,000
Retained earnings 300,000
Total 2,800,000
Inventory over - 90,000
Patent under 125,000
Land under 50,000
Fair value ( net assets) 2,885,000

Partial
80% 20%
Consideration + NCI 2,500,000 685,000
FV net assets - 2,308,000 - 577,000
Goodwill 192,000 108,000
64% 36%
(192K/300k) (108K/300k)
2014 Parent Subsidiary
Net income from own operations 525,000 485,000
Add (less) amortization of excess
overvaluation of assets 90,000
Undervaluation of assets - 25,000
Consolidated net income-Before impairment 525,000 550,000
Impairment -goodwill - 14,400 - 8,100
Consolidated net income 510,600 541,900
Less: ( NINIS) ( 110,000-8100) - 101,900
Net income attributale to parent 510,600 440,000

Parent Subsidiary
Net income from own operations 550,000 520,000
Add (less) amortization of excess
overvaluation of assets
Undervaluation of assets-Parent - 25,000
Consolidated net income 550,000 495,000
Less: ( NINIS) 495000*20% - 99,000
Net income attributale to parent 550,000 396,000
Consolidated retained earnings ( 1st year of acquisition)
Retained earnings beg.-Parent 2,460,000
Add:Net income attributale to parent-2014 950,600
Total 3,410,600
Less: Dividend declared-Parent - 50,000
Consolidated retained earnings -2014 3,360,600
Add:Net income attributale to parent 946,000
Total 4,306,600
Less: Dividend declared-Parent - 35,000
Consolidated retained earnings -2015 4,271,600

NCI beg 685,000

Add: ( NINIS)-2014 101,900
Total 786,900
Less: NCI's share in the dividend (35000*20%) -7000
NCI end-2014 779,900
Add: ( NINIS) 99,000
Total 878,900
Less: NCI's share in the dividend (50000*20%) -10000
NCI end-2015 868,900
 5 25000

577,000

Total
3,185,000
- 2,885,000
300,000

Total
1,010,000

90,000
- 25,000
1,075,000
- 22,500 550,000
1,052,500 20%
- 101,900 110,000
950,600 - 8,100
101,900
Total
1,070,000

- 25,000
1,045,000
- 99,000
946,000
Book value ( net assets) (50,000+15000+41000_ 106000 Amortization
Inventories (17100-16100) under 1000 1000
Equipment (48000-40000) under 8000 4 2,000
Patents (13000-10000) under 3000 10 300
Fair value ( net assets) 118000 3,300

Full (118000*10%)
90% 10% Total
Consideration + NCI 120,600 11800 132,400
FV net assets - 106,200 11,800 118,000
Goodwill 14,400 - 14,400

Parent Subsidiary Total

Net income 30200 9400 39600
Less:(4000*90%)
Dividend income/Invesment income -3600 -3600
Net income from own operations 26600 9400 36000
Add (less) amortization of excess
Undervaluation of assets - 3,300 - 3,300
Overvaluation of assets
Undervaluation of liabilities
overvaluation of liabilities
Consolidated net income 26600 6100 32700
Less: ( NINIS) (6100*10%) -610 -610
Net income attributale to parent 26600 5490 32090

Consolidated retained earnings ( 1st year of acquisition)

Retained earnings beg.-Parent 48000
Add:Net income attributale to parent 32090
Total 80090
Less: Dividend declared-Parent -15000
Consolidated retained earnings end 65090

NCI beg 11,800

Add: ( NINIS) 610
Total 12,410
Less: NCI's share in the dividend (4000*10%) -400
NCI end 12,010
Amortization