FRF7

Section A: Q8

Specimen exam

Q8 Section A

2 marks

Fork Co owns an 80% investment in Spoon Co which it purchased several years ago.

The goodwill on acquisition was valued at $1,674,000 and there has been no impairment of that goodwill since the date of acquisition.

On 30 September 20X4, Fork Co disposed of its entire investment in Spoon Co details of which are as follows:

$'000
Sales proceeds of Fork Co's entire investment in Spoon Co 5,580
Cost of Fork Co's entire investment in Spoon Co 3,720

Immediately before the disposal, the consolidated financial statements of Fork Co included the following amounts in respect of Spoon Co:

$'000
Carrying amount of the net assets (excluding goodwill) 4,464
Carrying amount of the non-controlling interests 900

Calculate the profit/loss on disposal (before tax) that will be recorded in Fork Co's CONSOLIDATED statement of profit or loss for the year ended 30 September 20X4.

Input your answer in the following format, e.g. 123
(Don't use commas or decimal points etc.)
$