Question 23 0.5 pts The treatment of dividends, paid by a subsidiary, that are identified as paid out of pre- acquisition profits in the period they are paid, is carried out to: record a return of the investment in the subsidiary by decreasing the investment in the subsidiary in the books of the parent entity. The amount of the investment will be eliminated on consolidation o record a decrease in pre-acquisition reserves or retained profits in the books of the subsidiary capitalise the dividend in the books of the parent entity as a further investment in the subsidiary. This amount will be eliminated on consolidation record dividend revenue and the receipt of cash in the books of the parent entity Question 24 0.5 pts Which of the following dividends are included in the consolidated financial statements? o No dividends are included; all are eliminated in consolidation entries Dividends payable by the subsidiary to non-controlling interests only Both dividends payable by the subsidiary to non-controlling interests and by the parent entity to external shareholders Dividends paid by the parent entity to external shareholders only Question 28 0.5 pts Purchased goodwill is recognised as the amount of: o the excess of the cost of acquisition incurred by an acquirer over the fair value of the identifiable net assets including fair value of contingent assets and liabilities acquired o the excess of the cost of acquisition incurred by an acquirer over the fair value of the identifiable liabilities acquired including fair value of contingent assets acquired the lower of the sum of related expenditure on advertising and promotion undertaken in the past two years by the subsidiary being purchased and the independent valuation of the market value of that subsidiary's goodwill the difference between fair values and the carrying amount of the net assets of the company acquired Question 29 0.5 pts The following diagram represents the ownership of issued share capital of the companies in a group. What is the total outside equity interest in D Ltd? A Ltd 88% 40% B Ltd 75% C Ltd D Ltd 40% 40% 66.40% 10.56% 33.60%