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On 31 December 20x7, P Ltd paid $250 million to acquire 30% of A Ltd when A Ltd's net assets were represented by share capital
- On 31 December 20x7, P Ltd paid $250 million to acquire 30% of A Ltd when A Ltd's net assets were represented by share capital of $300 million and retained profit of $300 million, except for an unrecognized brand that was deemed to have a fair value of $100 million. In 20x8, all of the goodwill on acquisition of A Ltd was deemed to be impaired. For 20x8 consolidation, the equity accounting journal entry for goodwill impairment should be:
- Dr Goodwill impairment $12 million; Cr Goodwill $12 million.
- None of the listed choices.
- Dr Share of associate's profit $40 million; Cr Investment in associate $40 million.
- Dr Share of associate's profit $12 million; Cr Investment in associate $12 million.
- Dr Goodwill impairment $40 million; Cr Goodwill $40 million.
- Which of the following statements is true?
- None of the listed choices.
- An option may be an asset or a liability for the writer.
- An option may be an asset or a liability for the holder.
- An option is always an asset for the writer.
- An option is always an asset for the holder.
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