Question: X Ltd controls Y Ltd. On the control date, the carrying amount of Y Ltds equipment was $60,000 while its fair value was $75,000. The

  1. X Ltd controls Y Ltd. On the control date, the carrying amount of Y Ltds equipment was $60,000 while its fair value was $75,000. The equipment cost $100,000 and had a residual value of zero. Y Ltd uses the cost model for its equipment. On the control date, the consolidation adjustment will include the following line:

  1. Cr Retained profits $15,000
  2. Dr Accumulated depreciation $40,000
  3. Cr Equipment $60,000
  4. Cr Asset revaluation reserve $15,000

Please provide calculation

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

1. X Ltd controls Y Ltd. On the control date, the carrying amount of Y Ltds equipment was $60,000 while its fair value was $75,000. The equipment cost $100,000 and had a residual value of zero. Y Ltd...

Q:

X Ltd controls Y Ltd. On the control date, the carrying amount of Y Ltd's equipment was $60,000 while its fair value was $75,000. The equipment cost $100,000 and had a residual value of zero. Y Ltd...

Q:

Demon Ltd gained control of Garry Ltd on 31 December 2018. On that date, the carrying amount of Garry Ltds equipment was $20,000 higher than its fair value. The equipment had a residual value of...

Q:

Kate Ltd gained control of Tony Ltd on 31 December 2018. On that date, the carrying amount of Tony Ltds equipment was $20,000 lower than its fair value. The equipment had a residual value of zero. On...

Q:

Summer Ltd gained control of Kitty Ltd on 31 December 2017. On that date, the carrying amount of Kitty Ltd's machine was $15,000 lower than its fair value. The machine was purchased at a cost of...

Q:

10 QUESTION TWO a) The following summarized trial balances pertain to Takoradi Ltd and its subsidiary Accra Ltd for the year ended 31 December 2018: Takoradi Ltd Accra Ltd Debit Credit Debit Credit...

Q:

kindly show me all workings . Thanks Multiple-choice questions Select the best answer from the alternatives given and circle the letter of your choice. 1. On November 30, Pindar Co. purchased for...

Q:

On 30 June 2016, Harrison Ltd gained control of Watts Ltd by purchasing all its share capital for $290000. The purchase was based on the fair values of Watts Ltd's net assets. On 30 June 2016, the...

Q:

Question 1 question 1 Question text The pre-acquisition entry is necessary to: Select one: a. avoid overstating the equity and net assets of the group. b. avoid understating the equity and net assets...

Q:

On 30 June 2016, Harrison Ltd gained control of Watts Ltd by purchasing all its share capital for $290 000. The purchase was based on the fair values of Watts Ltds net assets. On 30 June 2016, the...

Q:

Q2 (7 points) Section 4.2: 66, 72. 10 66. [4 marks] For the expression (1+ )", determine the appropriate f(x) and a, and evaluate L(x) = f(a) + f'(a)(x - a). Calculate the numerical error in the...

Q:

Name three real product-based businesses and specify the product that each provides. Name three real service-based businesses and specify the service that each provides.

Q:

5 0 3 Chapter 8 Class Problems Durham Corporation has budgeted for the following sales: ( \ left . \ begin { array } { lll } July 5 0 3 Chapter 8 Class Problems Durham Corporation has budgeted for...

Q:

The Foreign Corrupt Practices Act prohibits _ _ _ _ _ _ _ _ _ _ _ _ _ . Group of answer choices Unfair trade practices Bribery of U . S . officials by foreign businesses Bribery of foreign officials...

Q:

Understand how overconcentration in big cities affects the working environment and employees work-life balance.

Q:

Understand the role of headquarters HRM practices in large Japanese companies.

Q:

Understand how companies can improve their employees working environment and the border society on the same footing.