Pudding Ltd Acquired a 90 Per Cent Interest in Peaches

Multiple Choice

Pudding Ltd acquired a 90 per cent interest in Peaches Ltd on 1 July 2013 for a cash consideration of $2 300 000.On the same date,Peaches Ltd acquired a 70 per cent interest in Cream Ltd for a cash consideration of $1 100 000.The fair value of the net assets of each of the companies at acquisition is as follows: $\begin{array}{|l|r|r|}\hline & \text { Peaches Ltd } & \text { Cream Ltd } \\\hline \text { Share capital } & 1340000 & 100000 \\\hline \text { Retained earnings } & \underline{950000} &{500000}\\\hline & 2290000 & 1500000 \\\hline\end{array}$ Goodwill has been determined not to have been impaired.Information for the period ended 30 June 2014 for Peaches Ltd and Cream Ltd is as follows: $$\begin{array} { | l | r | r } \hline & \text { Peaches Ltd } & \text { Cream Ltd } \\\hline \text { Operating profit after tax } & 560000 & 230000 \\\hline \text { Dividends proposed } & 50000 & 40000 \\\hline\end{array}$$ Neither dividend had been paid at the end of the period.There were no other intragroup transactions during the period.What is the non-controlling interest in Peaches Ltd and Cream Ltd as at 30 June 2014?

A) $\begin{array}{|l|r|r|r}\hline & \text { Peaches Ltd } & \text { Cream Ltd } \\\hline \text { Operating profit } & 53200 & 85100 \\\hline \text { Retained earnings } & 95000 & 150000 \\\hline \text { Dividends } & (5000) & (12000) \\\hline \text { Share capital } & 134000 & 300000 \\\hline\end{array}$
B) $\begin{array}{|l|r|r|r}\hline & \text { Peaches Ltd } & \text { Cream Ltd } \\\hline \text { Operating profit } & 56000 & 6900 \\\hline \text { Retained earnings } & 95000 & 185000 \\\hline \text { Dividends } & (5000) & (12000) \\\hline \text { Share capital } & 134000 & 370000 \\\hline\end{array}$
C) $$\begin{array} { | l | r | r | } \hline & \text { Peaches Ltd } & \text { Cream Ltd } \\\hline \text { Operating profit } & 50810 & 83250 \\\hline \text { Retained earnings } & 95000 & 185000 \\\hline \text { Dividends } & ( 5000 ) & ( 12000 ) \\\hline \text { Share capital } & 134000 & 37000 \\\hline\end{array}$$
D) $$\begin{array} { | l | r | r | } \hline & \text { Peaches Ltd } & \text { Cream Ltd } \\\hline \text { Operating profit } & 53610 & 67500 \\\hline \text { Retained earnings } & 95000 & 150000 \\\hline \text { Dividends } & ( 5000 ) & ( 12000 ) \\\hline \text { Share capital } & 134000 & 30000 \\\hline\end{array}$$