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