On 1 July 2014 Bycomb acquired 80% of Cyclip’s equ

ity shares on the following terms:

–a share exchange of two shares in Bycomb for every three shares acquired in Cyclip; and

–a cash payment due on 30 June 2015 of $1·54 per share acquired (Bycomb’s cost of capital is 10% per annum).

At the date of acquisition, shares in Bycomb and Cyclip had a stock market value of $3·00 and $2·50 each respectively.

Required:

(a)Calculate the consolidated goodwill at the date of acquisition of Cyclip.

(b)Prepare extracts from Bycomb’s consolidated statement of profit or loss for the year ended 31 March 2015, for:Kaplow

(i)revenue;

(ii)cost of sales;

(iii)finance costs;

(iv)profit or loss attributable to the non-controlling interest.