Graham Limited acquired 90% of the share capital and reserves of Terry Limited for $170,000. Share capital was $ 100 000 and reserves amounted to $62 000. All assets and liabilities were recorded at fair value except equipment which was recorded at $30 000 below fair value. The company tax rate was 30%. The partial goodwill method is adopted by the group. The NCI share of equity at the date of acquisition was: Question 7Select one: a. $17 000 b. $19 200 c. S 16 200 d. $18 30
Graham Limited acquired 90% of the share capital and reserves of Terry Limited for $170,000. Share capital was $ 100 000 and reserves amounted to $62 000. All assets and liabilities were recorded at fair value except equipment which was recorded at $30 000 below fair value. The company tax rate was 30%. The partial goodwill method is adopted by the group. The NCI share of equity at the date of acquisition was: Question 7Select one: a. $17 000 b. $19 200 c. S 16 200 d. $18 30
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Graham Limited acquired 90% of the share capital and reserves of Terry Limited for $170,000. Share capital was $
100 000 and reserves amounted to $62 000. All assets and liabilities were recorded at fair value except equipment which
was recorded at $30 000 below fair value. The company tax rate was 30%. The partial goodwill method is adopted by
the group. The NCI share of equity at the date of acquisition was: Question 7Select one: a. $17 000 b. $19 200 c. $
16 200 d. $18 30](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb7e32729-94d8-46a0-927e-66c0c1310ed7%2Fa733feed-5b90-4fa8-8582-919c8a296ab2%2Fy8z187o_processed.png&w=3840&q=75)
Transcribed Image Text:Graham Limited acquired 90% of the share capital and reserves of Terry Limited for $170,000. Share capital was $
100 000 and reserves amounted to $62 000. All assets and liabilities were recorded at fair value except equipment which
was recorded at $30 000 below fair value. The company tax rate was 30%. The partial goodwill method is adopted by
the group. The NCI share of equity at the date of acquisition was: Question 7Select one: a. $17 000 b. $19 200 c. $
16 200 d. $18 30
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