Quark acquired 70% of the 1m issued £1 ordinary shares of Whey on 1 January 20X1 when Whey's retained earnings were £1,500,000. The group measures non-controlling interest (NCI) at fair value at the acquisition date. The FV of the NCI of Whey as at 1 January 20X1 was £1,325,000. An impairment review performed at 31 December 20X1 indicated that goodwill on the acquisition of Whey had impaired by £425,000. The retained earnings of Whey at 31 December 20X1 were £2,750,000. The NCI to be included in the consolidated statement of financial position at 31 December 20X1 will be: O a. £1,275,000 O b. £997,500 O c. £1,572,500 O d. None of these options are correct O e. £1,700,000 O f. £2,150,000 O g. £2,022,500
Quark acquired 70% of the 1m issued £1 ordinary shares of Whey on 1 January 20X1 when Whey's retained earnings were £1,500,000. The group measures non-controlling interest (NCI) at fair value at the acquisition date. The FV of the NCI of Whey as at 1 January 20X1 was £1,325,000. An impairment review performed at 31 December 20X1 indicated that goodwill on the acquisition of Whey had impaired by £425,000. The retained earnings of Whey at 31 December 20X1 were £2,750,000. The NCI to be included in the consolidated statement of financial position at 31 December 20X1 will be: O a. £1,275,000 O b. £997,500 O c. £1,572,500 O d. None of these options are correct O e. £1,700,000 O f. £2,150,000 O g. £2,022,500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Quark acquired 70% of the 1m issued £1 ordinary shares of Whey on 1 January 20X1 when Whey's
retained earnings were £1,500,000.
The group measures non-controlling interest (NCI) at fair value at the acquisition date. The FV of the NCI
of Whey as at 1 January 20X1 was £1,325,000.
An impairment review performed at 31 December 20X1 indicated that goodwill on the acquisition of
Whey had impaired by £425,000.
The retained earnings of Whey at 31 December 20X1 were £2,750,000.
The NCI to be included in the consolidated statement of financial position at 31 December 20X1
will be:
O a. £1,275,000
O b. £997,500
O c. £1,572,500
O d. None of these options are correct
O e. £1,700,000
O f. £2,150,000
O g. £2,022,500](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb7a53b44-104b-4006-9469-91fa1196af7f%2F30d74b00-f0f6-4e67-ac2b-3655cf0d5407%2Fjojoazj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Quark acquired 70% of the 1m issued £1 ordinary shares of Whey on 1 January 20X1 when Whey's
retained earnings were £1,500,000.
The group measures non-controlling interest (NCI) at fair value at the acquisition date. The FV of the NCI
of Whey as at 1 January 20X1 was £1,325,000.
An impairment review performed at 31 December 20X1 indicated that goodwill on the acquisition of
Whey had impaired by £425,000.
The retained earnings of Whey at 31 December 20X1 were £2,750,000.
The NCI to be included in the consolidated statement of financial position at 31 December 20X1
will be:
O a. £1,275,000
O b. £997,500
O c. £1,572,500
O d. None of these options are correct
O e. £1,700,000
O f. £2,150,000
O g. £2,022,500
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