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On 1 July 20x2 Parent Ltd acquired 100% of the issued shares of Subsidiary Ltd. Extracts from the Financial...

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On 1 July 20x2 Parent Ltd acquired 100% of the issued shares of Subsidiary Ltd. Extracts from the Financial Statements of each entity as at 30 June 20x3 are presented below. Subsidiary Ltd $ Rent Revenue Dividend Revenue Retained Earnings Share Capital Dividend Declared Land Shares in Subsidiary Rent Expense Additional information for the year ended 30 June 20x3 • The parent rented a warehouse from the subsidiary during the financial year for $75,000. The Land of the subsidiary had a carrying amount of $150,000 and a fair value of $180,000. Subsidiary Ltd paid an interim dividend of $7,500 in January 20x3. Parent Ltd 150,000 7,500 112,500 180,000 300,000 205,500 93,000 112,500 7,500 150,000 120,000

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Let s analyze the information provided for Parent Ltd and Subsidiary Ltd as at 30 June 20x3 Parent Ltd Rent Revenue 150 000 Dividend Revenue 7 500 Ret View the full answer


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Financial Accounting and Reporting

Financial Accounting and Reporting

ISBN: 978-0273744443

14th Edition

Authors: Barry Elliott, Jamie Elliott

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Posted Date: January 21, 2023 02:39:18
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