On 3 May 2016, Mashego Limited acquired 75% (and control) of Mahlangu Limited's outstanding ordinary shares for R112 000. The fair value of the non-controlling interest was equal to a proportionate share of the book value of Mahlangu Limited's net assets at the date of acquisition. The selected balance sheet data for the two companies as at 30 April 2016 are as follows: Mashego Mahlangu Limited Limited R R Total assets 504 000 216 000 Liabilities 144 000 72 000 Ordinary shares 120 000 60 000 Retained earnings 240 000 84 000 Equity & liabilities 504 000 216 000 What amount should be recorded as non-controlling interest in the net assets of Mahlangu Limited in the consolidated statement of financial position of Mashego Limited at 30 April 2016? Select one: O a. R90 000 O b. R54 000 O G R36 000 O d. R108 000
On 3 May 2016, Mashego Limited acquired 75% (and control) of Mahlangu Limited's outstanding ordinary shares for R112 000. The fair value of the non-controlling interest was equal to a proportionate share of the book value of Mahlangu Limited's net assets at the date of acquisition. The selected balance sheet data for the two companies as at 30 April 2016 are as follows: Mashego Mahlangu Limited Limited R R Total assets 504 000 216 000 Liabilities 144 000 72 000 Ordinary shares 120 000 60 000 Retained earnings 240 000 84 000 Equity & liabilities 504 000 216 000 What amount should be recorded as non-controlling interest in the net assets of Mahlangu Limited in the consolidated statement of financial position of Mashego Limited at 30 April 2016? Select one: O a. R90 000 O b. R54 000 O G R36 000 O d. R108 000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On 3 May 2016, Mashego Limited acquired 75% (and control) of Mahlangu Limited's outstanding ordinary shares for R112 000. The fair value of the non-controlling interest was
equal to a proportionate share of the book value of Mahlangu Limited's net assets at the date of acquisition. The selected balance sheet data for the two companies as at 30 April
2016 are as follows:
Mashego
Mahlangu
Limited
Limited
R
R
Total assets
504 000
216 000
Liabilities
144 000
72 000
Ordinary shares
120 000
60 000
Retained earnings
240 000
84 000
Equity & liabilities
504 000
216 000
What amount should be recorded as non-controlling interest in the net assets of Mahlangu Limited in the consolidated statement of financial position of Mashego Limited at 30
April 2016?
Select one:
O a. R90 000
O b. R54 000
O C R36 000
O d. R108 000
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