Question
Nett Ltd (a Parent company & investor) acquired a 30% interest in Ball Ltd (associate) for $120000 cash on 1 July 2022. The directors of
Nett Ltd (a Parent company & investor) acquired a 30% interest in Ball Ltd (associate) for $120000 cash on 1 July 2022. The directors of Nett Ltd believe this investment represents significant influence over the investee. The equity of Ball Ltd at the acquisition date was as follows.
Profits and dividends for the years ended 30 June 2023 to 2025 were as follows.
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| Profit before tax |
| Income tax expense |
| Dividends paid | |||||||||
| 2023 |
| $ | 160000 |
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| $ | 65000 |
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| $ | 140000 |
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| 2024 |
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| 120000 |
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| 40000 |
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| 60000
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Fundamentals of Financial Accounting
Authors: Fred Phillips, Robert Libby, Patricia Libby
5th edition
978-0078025914
