Rainbow Ltd has control over Winnie Ltd. Rainbow sold an equipment to Winnie for $3,800,000 in...

   

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Rainbow Ltd has control over Winnie Ltd. Rainbow sold an equipment to Winnie for $3,800,000 in January 20X5. The equipment was 3 years old when sold, and had cost Rainbow $4,500,000 to buy, with expected residual value $500,000. The residual value and remaining useful life of the equipment did not change. The equipment had been depreciated by Rainbow at 10% p.a. straight-line. The amount of the unrealised gain/loss on the sale was: Select one: A. $700,000 gain B. 5700,000 loss $500,000 gain D. $200,000 loss On 1 January 2OXO, Sharco Ltd acquired 90% of the share capital of Max Ltd for $900,000 cash. At that date, the equity section of Max Ltd's balance sheet was as follows: Share capital 700,000 Retained profits 50,000 Asset revaluation reserve 100,000 Assume all assets and liabilities were recorded at their fair values, except for a piece of equipment recorded at $50,000 but Sharco Ltd considers it to have a fair value of $100,000. This equipment is not revalued by Max Ltd. The difference on acquisition is: Select one: O Not goodwill under any method because the difference is a bargain purchase. a larger amount of goodwill under the partial goodwill method compared with the full method. a larger amount of goodwill under the full goodwill method compared with the partial method. not conclusively comparable under the full and partial methods from the available information. Minion Ltd acquired 20% and significant influence over the operations of Hoola Ltd and control over the operations of Mend Ltd on 1 July 20X0. Hoola Ltd reported a profit of $800,000 for the year ended 30 June 20X1. For its financial year ended 30 June 20X1, Minion Ltd would report a share of Hoola Ltd's profit of: Select one: Would not report any amount anywhere. $800,000 in the consolidated financial statements of the Minion Group. $160,000 in the consolidated financial statements of the Minion Group. $160.000 in the separate financial statements of Minion Ltd. Rainbow Ltd has control over Winnie Ltd. Rainbow sold an equipment to Winnie for $3,800,000 in January 20X5. The equipment was 3 years old when sold, and had cost Rainbow $4,500,000 to buy, with expected residual value $500,000. The residual value and remaining useful life of the equipment did not change. The equipment had been depreciated by Rainbow at 10% p.a. straight-line. The amount of the unrealised gain/loss on the sale was: Select one: A. $700,000 gain B. 5700,000 loss $500,000 gain D. $200,000 loss On 1 January 2OXO, Sharco Ltd acquired 90% of the share capital of Max Ltd for $900,000 cash. At that date, the equity section of Max Ltd's balance sheet was as follows: Share capital 700,000 Retained profits 50,000 Asset revaluation reserve 100,000 Assume all assets and liabilities were recorded at their fair values, except for a piece of equipment recorded at $50,000 but Sharco Ltd considers it to have a fair value of $100,000. This equipment is not revalued by Max Ltd. The difference on acquisition is: Select one: O Not goodwill under any method because the difference is a bargain purchase. a larger amount of goodwill under the partial goodwill method compared with the full method. a larger amount of goodwill under the full goodwill method compared with the partial method. not conclusively comparable under the full and partial methods from the available information. Minion Ltd acquired 20% and significant influence over the operations of Hoola Ltd and control over the operations of Mend Ltd on 1 July 20X0. Hoola Ltd reported a profit of $800,000 for the year ended 30 June 20X1. For its financial year ended 30 June 20X1, Minion Ltd would report a share of Hoola Ltd's profit of: Select one: Would not report any amount anywhere. $800,000 in the consolidated financial statements of the Minion Group. $160,000 in the consolidated financial statements of the Minion Group. $160.000 in the separate financial statements of Minion Ltd.