Thisscenario related to question 1,2,3,4 and 5.Cass Ltd purchased 80% of the capital of Logic Ltd for $280 000 on 1 July 2014.At that date, the equity of Logic Ltd was:Share capital$110,000General reserve $ 35,000Retained earnings $ 60,000At this date, Logic Ltd had not recorded any goodwill, and all identifiable assets and liabilities were recorded at fair value except for the following assets:Carrying amount Fair value$100,000$250,000$90,000InventoryPlant (cost $300,000)Land$80,000$200,000$50,000The plant has a remaining useful life of 5 years.Half of the inventory on hand at 1 July 2014 was sold by 30 June 2015.Differences between carrying amounts and fair values are recognised on consolidation.The tax rate is 30%. Q3.Compute NCI balance for the period 2014-2015.Select one:O A. $7,200O B. $63,600O C. $56,400O D. $65,000

Non-controlling interest refers to the position where the shareholder has less than 50% of…

Cass Ltd purchased 80% of the capital of Logic Ltd for $280 000 on 1 July 2014. At that date, the equity of Logic Ltd was: Share capital $110,000 General reserve $ 35,000 Retained earnings $ 60,000 At this date, Logic Ltd had not recorded any goodwill, and all identifiable assets and liabilities were recorded at fair value except for the following a Carrying amount Fair value $100,000 $250,000 $90,000 Inventory Plant (cost $300,000) Land $80,000 $200,000 $50,000 The plant has a remaining useful life of 5 years. Half of the inventory on hand at 1 July 2014 was sold by 30 June 2015.

Cass Ltd purchased 80% of the capital of Logic Ltd for $280 000 on 1 July 2014. At that date, the equity of Logic Ltd was: Share capital $110,000 General reserve $ 35,000 Retained earnings $ 60,000 At this date, Logic Ltd had not recorded any goodwill, and all identifiable assets and liabilities were recorded at fair value except for the following a Carrying amount Fair value $100,000 $250,000 $90,000 Inventory Plant (cost $300,000) Land $80,000 $200,000 $50,000 The plant has a remaining useful life of 5 years. Half of the inventory on hand at 1 July 2014 was sold by 30 June 2015.

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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