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H Ltd acquired 25% of the equity voting shares of S Ltd on 1 January 2004. The total equity voting shares consisted of 1,000,000 shares
H Ltd acquired 25% of the equity voting shares of S Ltd on 1 January 2004. The total equity voting shares consisted of 1,000,000 shares of £1 each nominal value. The price paid by H Ltd was £2 per share. On 1 January 2004, there was a credit balance of £356,000 on the reserves of S Ltd. The retained earnings of S Ltd on 31 December 2004 were £424,000. Which of the following figures would appear in the consolidated statement of financial position on 31 December 2004 in respect of the investment in S Ltd?
- a. £924,000
- b. £568,000
- c. £500,000
- d. £517,000
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