Oat bought 20% of Flax on 1 January 20X1 for £500,000 when Flax had £1,000,000 share capital and £3,600,000 retained earnings. Oat has as a contractual agreement with two other investors in Flax suc that they jointly control Flax's operations. At the year-end 31 December 20X1, Flax had retained earnings of £4,000,000. During the year Flax sold goods to Oat, making a profit of £50,000. None of these items had been sold b Oat at the year end. What is the value to be shown under "Investments in Joint Ventures" in the consolidated statement of financial position at 31 December 20X1? O a. £570,000 O b. £770,000 O C. None of these options are correct O d. £530,000 e. £820,000 f. £580,000

Oat bought 20% of Flax on 1 January 20X1 for £500,000 when Flax had £1,000,000 share capital and £3,600,000 retained earnings. Oat has as a contractual agreement with two other investors in Flax suc that they jointly control Flax's operations. At the year-end 31 December 20X1, Flax had retained earnings of £4,000,000. During the year Flax sold goods to Oat, making a profit of £50,000. None of these items had been sold b Oat at the year end. What is the value to be shown under "Investments in Joint Ventures" in the consolidated statement of financial position at 31 December 20X1? O a. £570,000 O b. £770,000 O C. None of these options are correct O d. £530,000 e. £820,000 f. £580,000

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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