5 Ben's net assets were £450,000 and this company owns 30% of Jon which generated profits of £40,000 and shareholder funds of £120,000 by the year end. When reporting group results, by how much will Ben's net assets increase. A) 12,000 B) 36,000 48,000 ABCD None of these 6 Joe's gearing is 40%. Annual interest charged on his 10% loan stock amounted to £60,000 this year, and Joe has 450,000 £1NV shares in issue. Retained earnings will be Nearest A) 350,000 B) 400,000 450,000 D) None of these 7 Following a 1:5 rights issue that was fully taken up and raised £10,000, Len has 60,000 £1NV shares in issue. Pre-rights share prices were 160p. Calculate the post-rights price. A) 133p B) 150p 160p None of these 8 Ted revalued a plant to £80,000 at the start of the year. The plant had cost £50,000 and is half-way through its useful working life. Straight line depreciation of 10% p.a. is used. Calculate the revaluation reserve balance at year-end. A) £24,000 B) £28,000 C) £32,000 D) None of these
5 Ben's net assets were £450,000 and this company owns 30% of Jon which generated profits of £40,000 and shareholder funds of £120,000 by the year end. When reporting group results, by how much will Ben's net assets increase. A) 12,000 B) 36,000 48,000 ABCD None of these 6 Joe's gearing is 40%. Annual interest charged on his 10% loan stock amounted to £60,000 this year, and Joe has 450,000 £1NV shares in issue. Retained earnings will be Nearest A) 350,000 B) 400,000 450,000 D) None of these 7 Following a 1:5 rights issue that was fully taken up and raised £10,000, Len has 60,000 £1NV shares in issue. Pre-rights share prices were 160p. Calculate the post-rights price. A) 133p B) 150p 160p None of these 8 Ted revalued a plant to £80,000 at the start of the year. The plant had cost £50,000 and is half-way through its useful working life. Straight line depreciation of 10% p.a. is used. Calculate the revaluation reserve balance at year-end. A) £24,000 B) £28,000 C) £32,000 D) None of these
Chapter23: Corporate Restructuring
Section: Chapter Questions
Problem 12P
Related questions
Question
Transcribed Image Text:5
Ben's net assets were £450,000 and this company owns 30% of Jon which generated
profits of £40,000 and shareholder funds of £120,000 by the year end. When reporting
group results, by how much will Ben's net assets increase.
A) 12,000
B) 36,000
48,000
ABCD
None of these
6
Joe's gearing is 40%. Annual interest charged on his 10% loan stock amounted to
£60,000 this year, and Joe has 450,000 £1NV shares in issue. Retained earnings will be
Nearest
A) 350,000
B) 400,000
450,000
D) None of these
7
Following a 1:5 rights issue that was fully taken up and raised £10,000, Len has 60,000
£1NV shares in issue. Pre-rights share prices were 160p. Calculate the post-rights price.
A)
133p
B)
150p
160p
None of these
8
Ted revalued a plant to £80,000 at the start of the year. The plant had cost £50,000 and is
half-way through its useful working life. Straight line depreciation of 10% p.a. is used.
Calculate the revaluation reserve balance at year-end.
A) £24,000
B) £28,000
C)
£32,000
D) None of these
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