How does joint control differ from control as applied on consolidation?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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How does joint control differ from control as
applied on consolidation?
Oceania Limited acquired 100% of the share
capital of Broadwater Limited. Broadwater
had total shareholder's equity of $500 000.
The book values of Broadwater Limited's
assets were: buildings $300 000, machinery
$180 000. The fair values of these assets
were: buildings $360 000, machinery $200
000. The tax rate is 30%. The fair value of the
identifiable net assets is:
a. $580 000 b. $420 000 c. $556 000 d. $444
444
Transcribed Image Text:How does joint control differ from control as applied on consolidation? Oceania Limited acquired 100% of the share capital of Broadwater Limited. Broadwater had total shareholder's equity of $500 000. The book values of Broadwater Limited's assets were: buildings $300 000, machinery $180 000. The fair values of these assets were: buildings $360 000, machinery $200 000. The tax rate is 30%. The fair value of the identifiable net assets is: a. $580 000 b. $420 000 c. $556 000 d. $444 444
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