ACCA · Question 47 · Preparing simple consolidated financial statements

Section B - Case 1: Group Consolidations

Scenario: On 1 January 20X5, Zenith Heavy Industries acquired 80% of the equity share capital of Apex Robotics for $2,500,000. At the date of acquisition, the fair value of Apex's net assets was $2,000,000. Zenith measures the Non-Controlling Interest (NCI) at fair value, which was $550,000 at the acquisition date. During the year ended 31 December 20X5, Zenith sold goods to Apex for $400,000 at a mark-up of 25%. Half of these goods remain in Apex's inventory at year-end. At 31 December 20X5, Zenith's retained earnings are $5,000,000. Apex's retained earnings were $1,000,000 at acquisition and $1,500,000 at year-end.

Following on from the previous question, the property with the $200,000 fair value uplift had a remaining useful life of 20 years at the acquisition date.

What is the additional depreciation charge required in the consolidated statement of profit or loss for the year ended 31 December 20X5? (Enter numbers only)