1)The sale of the entire 80% stake above will result in the following balance of non-controlling interests derecognized (Removed) in the Group?

Pare plc acquired 80% of the shares of Banan plc for $ 100,000 cash on 1 January 2010. At that date, the fair value of net assets of Banan plc was $50,000. Banan plc had a profit of $50,000 for the year ends 31 December 2010. Assume that Pare sells its entire 80% stake in Banan plc for 205,000 on 31 December 2010.

Select one:

a. 10,000

b. 15,000

c. 24,000

d. 35,000

2) The sale of the entire 80% stake above will result in the following balance of goodwill derecognized (Removed) in the Group?

Pare plc acquired 80% of the shares of Banan plc for $ 100,000 cash on 1 January 2010. At that date, the fair value of net assets of Banan plc was $50,000. Banan plc had a profit of $50,000 for the year ends 31 December 2010. Assume that Pare sells its entire 80% stake in Banan plc for 205,000 on 31 December 2010.

Select one:

a. 75,000

b. 20,000

c. 60,000

d. No Goodwill is derecognized

3) The sale of the entire 80% stake above will result in the following balance of Banan's net assets derecognized (Removed) from the Group ?

Pare plc acquired 80% of the shares of Banan plc for $ 100,000 cash on 1 January 2010. At that date, the fair value of net assets of Banan plc was $50,000. Banan plc had a profit of $50,000 for the year ends 31 December 2010. Assume that Pare sells its entire 80% stake in Banan plc for 205,000 on 31 December 2010.

Select one:

a. 40,000

b. 35,000

c. 50,000

d. 100,000

4) The sale of the entire 80% stake above will result in the following gain/loss recognized for the Group?

Pare plc acquired 80% of the shares of Banan plc for $ 100,000 cash on 1 January 2010. At that date, the fair value of net assets of Banan plc was $50,000. Banan plc had a profit of $50,000 for the year ends 31 December 2010. Assume that Pare sells its entire 80% stake in Banan plc for 205,000 on 31 December 2010.

Select one:

a. 65,000 Gain

b. No gain or loss is recognized as this is treated as a transaction between the owners

c. 105,000 Gain

d. 40,000 Loss