John Ltd, an ultimate parent reporting entity, controls 65% of the ordinary voting shares of Daisy Ltd. Daisy Ltd has recently acquired a 10% interest in Wick Ltd. John Ltd has a 35% interest in Wick Ltd. What is the equity accounted interest in Wick Ltd that will be reported in the consolidated financial statements of John Ltd Group? Oa. 45% O b.40% O C. 30% O d. 35%

John Ltd, an ultimate parent reporting entity, controls 65% of the ordinary voting shares of Daisy Ltd. Daisy Ltd has recently acquired a 10% interest in Wick Ltd. John Ltd has a 35% interest in Wick Ltd. What is the equity accounted interest in Wick Ltd that will be reported in the consolidated financial statements of John Ltd Group? Oa. 45% O b.40% O C. 30% O d. 35%

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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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

John Ltd, an ultimate parent reporting entity, controls 65% of the ordinary voting shares of Daisy Ltd. Daisy Ltd has recently acquired a 10% interest in Wick Ltd. John
Ltd has a 35% interest in Wick Ltd.
What is the equity accounted interest in Wick Ltd that will be reported in the consolidated financial statements of John Ltd Group?
a. 45%
b. 40%
O C. 30%
O d. 3
35%

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