On 1 July 20x2 Parent Ltd acquired 100% of the issued shares of Subsidiary Ltd. Extracts...
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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 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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Lets analyze the information provided for Parent Ltd and Subsidiary Ltd as at 30 June 20x3 Parent Ltd Rent Revenue 150000 Dividend Revenue 7500 Retain... View the full answer
Related Book For
Financial Accounting and Reporting
ISBN: 978-0273744443
14th Edition
Authors: Barry Elliott, Jamie Elliott
Posted Date:
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