On January 1,20X7,Water Limited Purchased 700,000 Shares of Bottle Inc

question 3

Essay

On January 1,20X7,Water Limited purchased 700,000 shares of Bottle Inc.for $2.8 million.On January 1,20X9,Water purchased another 200,000 shares of Bottle for $950,000.During the entire period Bottle had 1,000,000 shares outstanding.Water accounts for its investment in Bottle under the equity method.The following information was extracted from the financial records of Bottle:

All net identifiable assets had a fair value equal to their carrying value on the date of acquisition except the buildings.There is no goodwill reported on the separate entity financial statements of Water or Bottle.There have been no intercompany transactions between Water and Bottle.
Required:
Calculate the balances of following accounts on the consolidated statement of financial position at December 31,20X10,under the entity method:
a.Goodwill
b.NCI
Determine the adjustment to equity required for the second acquisition.

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Definitions:

Operant Conditioning

A teaching mechanism in which behavior is changed by applying incentives or consequences.

Classical Conditioning

Gaining understanding through the relationship between an environmental cue and an inherently present stimulus.

Operant Conditioning

A method of training in which the vigor of an action is influenced by rewards or sanctions.

Self-Defeating

Behaviors or thought patterns that undermine one's success or well-being, often occurring despite the individual's awareness of their detrimental effects.