Question
High paid 64,000 to acquire an 80% interest (4,000 1 shares) in the ordinary share capital of Low on 1 January 20X1, when the reserves
High paid 64,000 to acquire an 80% interest (4,000 1 shares) in the ordinary share capital of Low on 1 January 20X1, when the reserves of High and Low were 60,000 and 20,000 respectively. At 31 December 20X3, High's reserves were 100,000 and Low's reserves were 50,000.
Using parent company extension method, the consolidated group reserves as at 31 December 20X3 are:
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Financial Accounting Theory and Analysis Text and Cases
Authors: Richard G. Schroeder, Myrtle W. Clark, Jack M. Cathey
10th edition
470646284, 978-0470646281
