Morecombe plc acquired 8,000 equity shares and 6,000 preference shares in Wise Ltd on 31 December 20X3 when the retained earnings of Wise Ltd were £25,000. The following statements of financial position were prepared on 31 December 20X6:

Prepare the consolidated statement of financial position of Morecombe plc on 31 December 20X6. You may assume that the fair values of Wise Ltd’s net assets were equivalent to their book values at the date of acquisition.
 

Transcribed Image Text:

Investments: shares in Wise Ltd Preference shares Morecombe plc 5,000 3 Wise Ltd £ Investments: shares in Wise Ltd Preference shares Morecombe plc 5,000 3 Wise Ltd £

Answer rating: 100% (QA)

Morecombe plc consolidated statement of financia... View the full answer