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Working 3 , retain earning of Linas and Astas
You deducted 5 as pup on the parent and on transfer of tnca to Astas, 10 was the pup.
On consolidation , you added 10 which was the pup on transfer and added 5 which was the excess dep.
Instead of calling 5 pup on Linas while not refer to it as excess dep.
Because 10 was pup on transfer and excess dep was 10/2 = 5 excess dep.
Technically, that 5 depreciation add back is the appropriate part (in this case it’s a half) of the pup being realised
But you can call it “excess depreciation” if you wish
You could even call it SnowWhite and the 7 vertically challenged people if you want – so long as you arrive at the correct figure, it doesn’t really matter that much … except that the marker may struggle if you called it SnowWhite!
OK?
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