Homework Help is Here – Start Your Trial Now!
Business
Accounting
On 1 April 2000, X, a limited liability company, paid $120,000 for 48,000 $1 shares in Y, another limited liability company, representing 80% of Y’s $60,000 share capital. The retained earnings of Y at that date were $70,000. At 31 March 2005 the retained earnings of the companies were: $ X 180,000 Y 100,000 All goodwill arising has been written off because of impairment. What figure should appear in the consolidated balance sheet of the X group at 31 March 2005 for retained earnings? A $208,000 B $8,000 C $204,000 D $188,000

On 1 April 2000, X, a limited liability company, paid $120,000 for 48,000 $1 shares in Y, another limited liability company, representing 80% of Y’s $60,000 share capital. The retained earnings of Y at that date were $70,000. At 31 March 2005 the retained earnings of the companies were: $ X 180,000 Y 100,000 All goodwill arising has been written off because of impairment. What figure should appear in the consolidated balance sheet of the X group at 31 March 2005 for retained earnings? A $208,000 B $8,000 C $204,000 D $188,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

On 1 April 2000, X, a limited liability company, paid $120,000 for 48,000 $1 shares in Y, another limited liability

company, representing 80% of Y’s $60,000 share capital. The retained earnings of Y at that date were $70,000.

At 31 March 2005 the retained earnings of the companies were:

$

X 180,000

Y 100,000

All goodwill arising has been written off because of impairment.

What figure should appear in the consolidated balance sheet of the X group at 31 March 2005 for retained

earnings?

A $208,000

B $8,000

C $204,000

D $188,000

Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Consolidations
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS