Question
Kerry Ltd owns 70% of James Ltd. For the year ended 30 April 20X1, James Ltd reported a profit of $1 million. On 30 May
Kerry Ltd owns 70% of James Ltd. For the year ended 30 April 20X1, James Ltd reported a profit of $1 million. On 30 May 20X0, Kerry Ltd sold inventory to James Ltd for a $0.5 million profit. All this inventory was sold to customers outside the group on 1 June 20X0. What is the NCI share of James Ltds profit for year ended 30 April 20X1 ?
Select one:
$120,000
$150,000
$450,000
$300,000
Lillee Ltd acquired 60% of the issued share capital of Thompson Ltd on 1 February 20X1. Thompson Ltds shareholders equity (all at fair value) at that date was as follows:
$ 000s
Paid up capital 4,000
Retained profits 1,000
Asset revaluation reserve 2,000
If Lillee Ltd paid $4,000,000 for this acquisition what is the elimination entry if consolidated financial statements were prepared on 1 February 20X1? Use the partial method.
Select one:
A.
000s | 000s | |
Accounts | Debit $ | Credit $ |
Paid up capital | 4,000 | |
Retained profits | 1,000 | |
Asset revaluation reserve | 1,000 | |
Investment in Thompson Ltd | 4,000 | |
-B.
000s | 000s | |
Accounts | Debit $ | Credit $ |
Paid up capital | 2,400 | |
Retained profits | 600 | |
Asset revaluation reserve | 1,200 | |
Goodwill | 200 | |
Investment in Thompson Ltd | 4,000 |
-C.
000s | 000s | |
Accounts | Debit $ | Credit $ |
Paid up capital | 2,400 | |
Retained profits | 600 | |
Asset revaluation reserve | 1,200 | |
Bargain purchase | 200 | |
Investment in Thompson Ltd | 4,000 |
-D.
000s | 000s | |
Accounts | Debit $ | Credit $ |
Paid up capital | 4,000 | |
Retained profits | 1,000 | |
Asset revaluation reserve | 2,000 | |
Bargain purchase | 3,000 | |
Investment in Thompson Ltd | 4,000 |
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