a Upstream Inventory Transaction as of 2008 Total

Sales 40,000,000
CoGS (30,000,000)
Profit 10,000,000

Downstream Inventory Transaction as of 2008 Total

Sales 25,000,000
CoGS (20,000,000)
Profit 5,000,000

Downstream Equipment Transaction

Actual

Elimination
As If

BV Calculation as of 2009 Parent

Beginning Balance 345,000,000
NI 54,000,000
Dividend (18,000,000)
Ending Balance 381,000,000

Eliminating Entries as of 2009

Investment in Sub 2,400,000
NCI in NA of Sub 1,600,000
CoGS

Investment in Sub 1,500,000

CoGS

Acc. Depr. 1,000,000

Depr. Exp

Equipment 45,000,000
Gain on Disposal of Asset 5,000,000
Acc. Depr.

CS 300,000,000
APIC 50,000,000
RE 225,000,000
Income from Sub 58,900,000
NCI in NI of Sub 37,600,000
 Dividend Declared
Investment in Sub
NCI in NA of Sub

b Consolidated NI Calculation
Parent's Separate NI 150,000,000
Realization of Income from Downstream Inventory Transaction 1,500,000
Realization of Income from Downstream Equipment Transaction 1,000,000
Subsidiary's Separate NI 90,000,000
Realization of Income from Upstream Inventory Transaction 4,000,000
Consolidated NI
NCI
Consolidated NI Attributable to Controlling Interest
Resold On Hand
24,000,000 16,000,000
(18,000,000) (12,000,000)
6,000,000 4,000,000

Resold On Hand
17,500,000 7,500,000
(14,000,000) (6,000,000)
3,500,000 1,500,000

Equipment Acc. Depr. Gain on Disposal of Asset

Dr. Cr. Dr. Cr. Dr. Cr.
55,000,000 11,000,000 5,000,000

45,000,000 1,000,000 50,000,000 5,000,000

100,000,000 60,000,000 -

NCI CS APIC RE
230,000,000 300,000,000 50,000,000 225,000,000
36,000,000 90,000,000
(12,000,000) (30,000,000)
254,000,000 300,000,000 50,000,000 285,000,000

4,000,000

1,500,000

1,000,000

50,000,000
 30,000,000
385,900,000
255,600,000

152,500,000

94,000,000
246,500,000
(37,600,000)
208,900,000
 Depr. Exp.
Dr. Cr.
11,000,000

1,000,000
10,000,000
a BP 600,000,000
Premium on BP 1,500,000
Investment in Sub's Bonds 601,500,000
Interest Income 84,000,000
Interest Exp. 84,000,000

b Gain (Loss) Calculation

BV as of Jan 2006 192,000,000
Amortization up to Jan 2007 1,600,000
BV as of Jan 2007 193,600,000
Purchase Price (196,000,000)
Gain (Loss) on Constructive Retirement (2,400,000)

a BP 200,000,000
Interest Income 15,400,000
Investment in Sub's Stocks 1,680,000
NCI in NA of Sub 720,000
Discount on BP 4,800,000
Investment in Sub's Bonds 197,000,000
Interest Expense 16,000,000
Interest Payable 8,000,000
Interest Receivable 8,000,000
a BV Calculation
Parent's PS Parent's CS
Beginning Balance 160,000 210,000
Dividend in Arrear Impact on CS Holder (19,200)
Dividend in Arrear Impact on PS Holder 25,600
Ending Balance 185,600 190,800

Elimination Entry
PS 200,000
CS 150,000
RE 200,000
Investment in Sub's PS 185,600
Investment in Sub's CS 190,800
NCI in NA of Sub 173,600

b Consolidated NI Calculation
Parent's Seperate NI 80,000
Sub's Separate NI 34,000 114,000
NI Attributable to NCI
From PS (6,400)
From CS (800) (7,200)
NI Attributable to Controlling Interest 106,800
NCI PS CS RE
180,000 200,000 150,000 200,000
(12,800)
6,400
173,600 200,000 150,000 200,000
a Differential Calculation
FV of Parent's Proceed 4,240,000,000
FV of NCI's Proceed 1,060,000,000 5,300,000,000
CS (3,000,000,000)
RE (2,000,000,000)
NI from Q1 (300,000,000) (5,300,000,000)
Differential -

BV Calculation Parent NCI CS

Balance as of Apr 1 4,240,000,000 1,060,000,000 3,000,000,000
NI from Q2-Q4 560,000,000 140,000,000
Dividend (400,000,000) (100,000,000)
Balance as of Dec 31 4,400,000,000 1,100,000,000 3,000,000,000

Elimination Entries
Various Revenues 600,000,000
Various Expenses 300,000,000
RE 300,000,000
CS 3,000,000,000
RE 2,300,000,000
Income from Sub 560,000,000
NCI in NI of Sub 140,000,000
Dividend Declared 500,000,000
Investment in Sub 4,400,000,000
NCI in NA of Sub 1,100,000,000

b Consolidated IS Parent Sub Elimination

Dr.
Revenues 3,500,000,000 2,200,000,000 600,000,000
Expenses (2,000,000,000) (1,200,000,000)
Income from Sub 560,000,000 560,000,000
NI 2,060,000,000 1,000,000,000
NCI 140,000,000
NI Attributable to Controlling Interest
 RE
2,300,000,000
700,000,000
(500,000,000)
2,500,000,000

Consolidated
Cr.
5,100,000,000
300,000,000 (2,900,000,000)
-
2,200,000,000
(140,000,000)
2,060,000,000
a Translation
b Translation Worksheet
Item Balance Rate
Cash 540,000,000 132
AR 756,000,000 132
Inventory 1,935,000,000 132
PPE 3,735,000,000 132
AP 729,000,000 132
CS 3,480,000,000 122
RE 2,499,000,000 122
Sales 1,470,750,000 127
CoGS 885,937,500 127
Opex 248,062,500 127
Depr. Exp. 31,387,500 127
Income Tax Exp. 15,187,500 127
Dividend 32,175,000 130

Total Debits
Total Credits
OCI-Translation Adjustment Cr. (Dr.)

c Proof of Translation Adjustment

NA at Beginning of Year 5,979,000,000 122
NI 290,175,000 127
Dividend (32,175,000) 130
NA at Year End 6,237,000,000
NA at Year End Translated Using Current Rate 6,237,000,000 132
OCI-Translation Adjustment Cr. (Dr.)
Translated
4,090,909.09
5,727,272.73
14,659,090.91
28,295,454.55
5,522,727.27
28,524,590.16
20,483,606.56
11,580,708.66
6,975,885.83
1,953,248.03
247,145.67
119,586.61
247,500.00

62,316,093.41
(66,111,632.66)
(3,795,539.24)

49,008,196.72
2,284,842.52
(247,500.00)
51,045,539.24
47,250,000.00
(3,795,539.24)