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On the 1 July 2013, Alma Ltd purchased 30% of the shares of ManUnited Ltd for $ 50000, at this date the equity of Man
On the 1 July 2013, Alma Ltd purchased 30% of the shares of ManUnited Ltd for $ 50000, at this date the equity of Man United Ltd consisted of 200000 share capital and 20000 retained earnings. If the tax rate was 30% and there is no intracompany transaction. And if the profit on 30/6/2014 was 60000 Alma will record the following entry: Select one: a. DR. Investment in ManUnited 22800 CR. Share of profit of ManUnited 22800 b. DR. Investment in ManUnited 60000 CR. Share of profit of Man United 60000 c. DR. Investment in ManUnited 34000 CR. Share of profit of ManUnited 34000 d. DR. Investment in ManUnited 18000 CR. Share of profit of ManUnited 18000
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