As at 31 December 20x8, A Ltd's netassets are represented by share capitalof $500 million and retained profit of$500 million, B Ltd's net assets arerepresented by share capital of $200million and retained profit of $500million, and C Ltd's net assets arerepresented by share capital of $100million and retained profit of $300million. B Ltd acquired 70% of C Ltd in20x5 when C Ltd's retained profit was$200 million. A Ltd acquired 80% of BLtd in 20x6 when B Ltd's retainedprofit was $400 million and C Ltd'sretained profit was $250 million. Theamount of "non-controlling interest” inA Ltd's consolidated statement offinancial position as at 31 December20x8 should be:$260 million.$274 million.$270 million.None of the listed choices.$267 million.

In case of chain holding, in the parent company's book the record of all the subsidiaries are kept…

Answered: As at 31 December 20x8, A Ltd's net…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Trim Corporation acquired 100 percent of Round Corporation's voting common stock on January 1, 20X2, for $414,000. At that date, the book values and fair values of Round's assets and liabilities were equal. Round reported the following summarized balance sheet data: Assets $ 713,000 Accounts Payable Bonds Payable $ 104,000 195,000 Common Stock 128,000 Total $ 713,000 Retained Earnings Total 286,000 $ 713,000 Round reported net income of $79,000 for 20X2 and paid dividends of $26,000. Required: a. Give the journal entries recorded by Trim Corporation during 20X2 on its books if Trim accounts for its investment in Round using the equity method. b. Give the consolidation entries needed at December 31, 20X2, to prepare consolidated financial statements. Complete this question by enter
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