When the cost paid by an investor exceeds equity acquired in an associate: a. The treatment of a bargain purchase and goodwill is identical in an associate and joint venture. b. Goodwill is included in the carrying amount of the asset and is not a separate line item. c. Goodwill is an asset and treated the same irrespective of whether a subsidiary or an associate is obtained. d. Goodwill will be recognized in the group statements. An investor holds 40% in an associate. An intragroup profit of R7 500 was incurred. a. This transaction does not affect other comprehensive income and hence has no effect on the group statements. b. The profit and the asset should be reduced by R7 500 in the group statements. c. An intragroup profit of R7 50060% should be eliminated in the group statements. d. An intragroup profit of R7 50040% should be eliminated in the group statements. respect to associates and joint ventures. Significant influence: a. Always requires that more than 20% of shares are held in another company. b. Requires the provision of essential technical services and interchange of managerial personnel. c. Requires joint control of an investee. d. Is determined by considering potential voting rights that are currently exercisable or convertible. When the cost paid by an investor exceeds equity acquired in an associate: a. The treatment of a bargain purchase and goodwill is identical in an associate and joint venture. b. Goodwill is included in the carrying amount of the asset and is not a separate line item. c. Goodwill is an asset and treated the same irrespective of whether a subsidiary or an associate is obtained. d. Goodwill will be recognized in the group statements. An investor holds 40% in an associate. An intragroup profit of R7 500 was incurred. a. This transaction does not affect other comprehensive income and hence has no effect on the group statements. b. The profit and the asset should be reduced by R7 500 in the group statements. c. An intragroup profit of R7 50060% should be eliminated in the group statements. d. An intragroup profit of R7 50040% should be eliminated in the group statements. respect to associates and joint ventures. Significant influence: a. Always requires that more than 20% of shares are held in another company. b. Requires the provision of essential technical services and interchange of managerial personnel. c. Requires joint control of an investee. d. Is determined by considering potential voting rights that are currently exercisable or convertible