A Ltd acquires 80% of the shares of B Ltd on 1 September 20x5. B Ltd's...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A Ltd acquires 80% of the shares of B Ltd on 1 September 20x5. B Ltd's individual statement of profit or loss and other comprehensive income for the year ended 31 December 20x5 showed "Profit after tax" of $30,000. Assume that B Ltd's revenues and expenses accrue evenly throughout the year. The amount of B Ltd's pre-acquisition profit and the amount of B Ltd's post- acquisition profit that is to be included in A Ltd's consolidated statement of profit or loss and other comprehensive income for the year ended 31 December 20x5 should be respectively: $16,000 and $8,000. None of the listed choices. O $10,000 and $20,000. $20,000 and $10,000. $8,000 and $16,000. A Ltd acquires 80% of the shares of B Ltd on 1 September 20x5. B Ltd's individual statement of profit or loss and other comprehensive income for the year ended 31 December 20x5 showed "Profit after tax" of $30,000. Assume that B Ltd's revenues and expenses accrue evenly throughout the year. The amount of B Ltd's pre-acquisition profit and the amount of B Ltd's post- acquisition profit that is to be included in A Ltd's consolidated statement of profit or loss and other comprehensive income for the year ended 31 December 20x5 should be respectively: $16,000 and $8,000. None of the listed choices. O $10,000 and $20,000. $20,000 and $10,000. $8,000 and $16,000.
Expert Answer:
Answer rating: 100% (QA)
The detailed answer for the above question is provided below The correct answer is 8000 and 16000 Ex... View the full answer
Related Book For
Physics for Scientists and Engineers A Strategic Approach with Modern Physics
ISBN: 978-0133942651
4th edition
Authors: Randall D. Knight
Posted Date:
Students also viewed these accounting questions
-
Your best friend has an idea for a long-distance car service to drive people across the country. Indicate the best explanation for why others have not taken advantage of her idea: true innovation,...
-
You have an idea for a restaurant tip calculator app that you want to develop to use on your mobile phone when you go out to eat. You can enter the amount of the check before taxes, the tax rate, and...
-
Your camping buddy has an idea for a light to go inside your tent. He happens to have a powerful (and heavy!) horseshoe magnet that he bought at a surplus store. This magnet creates a 0.20 T field...
-
Discuss the primary sources of nonverbal communication.
-
What is the term used to refer to the physical surroundings in which service operations occur and how these surroundings affect customers and employees?
-
What is the function of the ODMG Object Interchange Format?
-
Ilectronics Inc. makes high-quality speakers for a variety of applications. Electronics Inc. is a St. Louis-based company but has significant manufacturing operations in China. When manufacturing...
-
The following table gives the average monthly exchange rate between the U.S. dollar and the euro for 2009. It shows that 1 euro was equivalent to 1.324 U.S. dollars in January 2009. Develop a trend...
-
Troy Engines, Limited, manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessary parts for its engines, including all of the carburetors. An...
-
1. Create and upload a histogram of the salary data for the city of Bell, where each bar width is about 50,000 US dollars. (Data for the histogram is at the bottom). a.) Is the distribution of the...
-
Select Norway which has a high repatriation risk for companies which engage in foreign direct investment. Observe the last balance of payments issued by the country. Does Norway appear to be...
-
To raise money, the local YMCA bought 160 kg of candy for $331.20. They sold the candy in 400 g bags for $2.52 each. How much profit did they make?
-
2. Skipping Sela decided to keep a skipping diary. If she did one skipping jump on her first day, two skipping jumps on her second day, three skipping jumps on her third day and so on until she did...
-
Maher Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price Units in beginning inventory Units produced Units sold...
-
The properties for saturated water and steam are given in table A-10 For water at T =70C and p = 31.19kPa (and quality x=0, meaning the water is entirely in liquid phase), what is the density of the...
-
Given the function - f(x) = [52 2 x < 0 5x-4x0 Calculate the following values: f(-1) = I f(0) = f(2) =
-
We watched a video of Steve Jobs talking about marketing in Apple. According to what Steve Jobs tells in that video, although marketing may be related to many things, it is essentially about, So,...
-
Complete the following acid-base reactions: (a) HCCH + NaH
-
One of the important ways in which the Higgs boson was detected at the Large Hadron Collider was by observing a type of decay in which the Higgswhich decays too quickly to be observed directlyis...
-
Commercial electricity is generated and transmitted as three phase electricity. Instead of a single emf, three separate wires carry currents for the emfs 1 = 0 cos t, 2 = 0 cos(t +120), and 3 = ...
-
The 300 F capacitor in FIGURE P30.75 is initially charged to 100 V, the 1200 F capacitor is uncharged, and the switches are both open. a. What is the maximum voltage to which you can charge the 1200...
-
Summers Manufacturing Corporation produces chemical products using a continual process. Summers uses the weighted average method for process costing. All manufacturing is accomplished in one...
-
Parker Laboratories, Inc., produces one of its products in two successive departments. All materi- als are added at the beginning of the process in Department 1. No materials are used in Department...
-
Kipling Manufacturing, Inc., operates a plant that produces its own regionally marketed Super Salad Dressing. The dressing is produced in two processes, blending and bottling. In the Blending...
Study smarter with the SolutionInn App