Asavela Limited holds assets with a fair value of R150 000 000 and a book value of R125 000 000 and liabilities with abook value and fair value of R50 000 000. What balance will be assigned to the non-controlling interests in theconsolidated balance sheet if Pearl Limited pays R90 000 000 to acquire 75% ownership in Asavela Limited and goodwillof R20 000 000 is reported? Select one: a. R50 000 000 b. R30 000 000 c. R40 000 000 d. R20 000 000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Asavela Limited holds assets with a fair value of R150 000 000 and a book value of R125 000 000 and liabilities with abook value and fair value of R50 000 000. What balance will be assigned to the non-controlling interests in theconsolidated balance sheet if Pearl Limited pays R90 000 000 to acquire 75% ownership in Asavela Limited and goodwillof R20 000 000 is reported?
Select one:
a.
R50 000 000
b.
R30 000 000
c.
R40 000 000
d.
R20 000 000 

Expert Solution
Step 1: Ownership:

Ownership is defined as an act by which one person becomes the lawful possessor of a property after paying the price asked for the particular property. A person can enjoy ownership of multiple resources.

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