Red owns 80% of White & 40% of Blue. At acquisition White/Blue reserves were £16,000 and £8,000 respectively. White non-current assets were revalued by £4,000 at that time. All relevant group/company data is shown below. Balance Sheets at 31-Dec-21 Non-current assets Investment in White Investment in Blue Other Net Assets £1NV Shares Reserves Profit/Loss Other Liabilities Red 48,000 White 24,000 Blue 10,000 40,000 10,000 20,000 30,000 22,000 118,000 54,000 32,000 40,000 25,000 10,000 54,000 23,000 14,000 14,000 6,000 8,000 10,000 118,000 54,000 32,000 Required: For the Red group at Ye-Dec-21 prepare a) Group Balance Sheet, b) Group Income Statement, and c) Explain the rationale for group accounts. For controlling/non-controlling interests calculate d) Return on Equity, and e) Earnings per Share
Red owns 80% of White & 40% of Blue. At acquisition White/Blue reserves were £16,000 and £8,000 respectively. White non-current assets were revalued by £4,000 at that time. All relevant group/company data is shown below. Balance Sheets at 31-Dec-21 Non-current assets Investment in White Investment in Blue Other Net Assets £1NV Shares Reserves Profit/Loss Other Liabilities Red 48,000 White 24,000 Blue 10,000 40,000 10,000 20,000 30,000 22,000 118,000 54,000 32,000 40,000 25,000 10,000 54,000 23,000 14,000 14,000 6,000 8,000 10,000 118,000 54,000 32,000 Required: For the Red group at Ye-Dec-21 prepare a) Group Balance Sheet, b) Group Income Statement, and c) Explain the rationale for group accounts. For controlling/non-controlling interests calculate d) Return on Equity, and e) Earnings per Share
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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