Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Knitting Co acquired 240,000 of Crocheting Co's 800,000 equity shares for 6 per share on 1 October 2019. Crocheting Co's profit after tax for the

image text in transcribed

Knitting Co acquired 240,000 of Crocheting Co's 800,000 equity shares for 6 per share on 1 October 2019. Crocheting Co's profit after tax for the year ended 30 September 2020 was 400,000 and it paid an equity dividend on 20 September 2020 of 150,000. Crocheting Co is an associate of Knitting Co. Fill in the blanks in the working on the carrying amount of the investment in Crocheting Co in the consolidated statement of financial position of Knitting Co as at 30 September 2020 (the equity method is used). NB! Write numbers only, do not write any words, letters, symbols in the blanks. Show negative amounts, i.e. amounts subtracted in brackets - e.g. (10,000). Consideration 1,440,000 Share of associate's profit Less: Dividend received Investment in associate as at 30 September 2017

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

2001 Miller Audit Procedures Miller Engagement

Authors: George Georgiades

1st Edition

0156071940, 978-0156071949

More Books

Students also viewed these Accounting questions

Question

Discuss consumer-driven health plans.

Answered: 1 week ago