Consolidation- Last minute doubt

Sorry for crashing this post! I’ve been stuck at this question since this morning as well but have moved on because I knew the answer was wrong after I had asked you. But would the accounting treatment be different had the subsidiary NOT recorded the fair value in its own financial statements?

Here is the full question:
Wiley acquired 80% of Coyote on 1 January 2008. At the date of acquisition coyote had a building which had a fair value $22 million and a carrying amount of $20 million. The remaining useful life was 20 years. At the year end date of 30 June 2008 the fair value of the building was $23 million.

Coyote profit for the year to 30 June 2008 was $1.6 million which accrued evenly throughout the year.

Wiley measures non controlling interest at fair value. At 30 June 2008 it estimated that goodwill in Coyote was impaired by $500,000.

What is the total comprehensive income attributable to the non controlling interest at 30 June 2008?

Options:
A. $250k
B. $260k
C. $360k
D. $400k

Answer:
Profit to 30 June 2008 $800,000
Additional depreciation (2m/20m x 6/12) = (50,000)
Goodwill impairment ($500,000)
Revaluation gain $1,000,000
Total $1,250,000
NCI share 20% = $250,000

This question was a BPP self made question- I couldn’t find it anywhere online.

when a parent company sales goods to associate so does the purp be added to the cost of sales in profit or loss and inventory in sfp

Complicated – no problem this time – I appreciate having the question in front of me

My way … deduct the FULL pup from the associate’s retained earnings, then take our share of those retained earnings to consolidated retained earnings in working W3

Working W5A – the investment in associate on the statement of financial position will automatically be reduced by out share of that pup

I thought that I had answered it when I elected for option $260,000

I don’t know why BPP have not charged depreciation for 6 months on the first revaluation, sorry