Disposal of subsidiary

Entity A has one subsidiary Entitiy B, Statement of FP as at 31Dec20X1 Entity A Entity B $'000 $'000 Investment at cost 5,000,000 share in C 7,000 Current Asset 500 7,800 ---------- ---------- 7,500 7,800 Share Capital of $1 each (10,000) (5,000) Acc Loss 2,500 (2,800) ---------- ----------- 7,500 (7,800) Statement of Comprehensive Income for YE 31/12/X1 Entity A Entity B Profit/(Loss) before t ax 1,500 1,400 Taxation 450 420 --------- -------- Profit/(Loss) after tax 1,050 980 Retained profit B/F 2,950 ? 1,820 Retaineed profit C/f 4,000 2,800, The good will on acquistion of Entity B was previously impaired by $400,000 Entity B was fully disposed of on 30 June 20x1 for a total cash consideration of $9.5 million Calculate gain on disposal of subsidiary Entity B. Ans. Calculate GW SC 5,000 Pre acq Profit 1,000 ------- 6,000 Purchase Consideration 7,000 -------- GW @ acquisition 1,000 Impairment (400) -------- Net Carrying Amount 600 Ans. 20X0 1.) Dr Share Captial 5,000 Dr Preacquistion Porfit 1,000 Dr GW 1,000 Cr Cost of Investment 7,000 Being elimination of cost of investment in Entity B 20X1 1.) Dr Cost of Investment 7,000 Cr Preacqisition Profit 1,000 Cr GW 1,000 Cr Cost of Investment 5,000 Being reversal of elimination of cost of investment in Entity B 2.) Sales Proceeds 9,500 Less : Net Assets at disposal date Share Capital 5,000 R/E B/f 1,820 Current Year 490 GW 600 (7,910) ---------- Gain on disposal 1,590 Q.) Based on the above, what is the journal entry at company level and consolidation level Thank you