calculate the value of the NCI at the date of acquisition.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Entity A acquired 60% of the ordinary shares of Business B on the 1st January 20x6. At acquisition, the book value of the subsidiary’s net assets was R400 000. The following information also relates to the subsidiary’s net assets: The fair value of PPE is found to be R100 000 higher than its book value; the fair value of inventory is 80% of the existing book value of R50 000; B discloses a contingent liability with a fair value considered to be R40 000; The non-controlling interest (NCI) was valued using the proportionate share of net assets method at acquisition. Based on this information, calculate the value of the NCI at the date of acquisition. Select one: a. R180 000 b. R160 000 c. R170 000 d. R150 000 

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