Which item is eliminated when preparing a consolidation worksheet? a. Equipment acquisitions Macca Ltd has a wholly (100%) owned subsidiary, Walnut Ltd. Walnut Ltd has a subsidiary, Cashew Ltd and owns 75% of the subsidiary’s shares. If Cashew Ltd went into liquidation, Macca Ltd would be entitled to: a. 75% of any surplus of Cashew Ltd’s assets over its liabilities. b. 100% of profits made by Cashew Ltd since Macca Ltd acquires Walnut Ltd. c. 75% of profits made by Cashew Ltd since its acquisition by Walnut Ltd. d. whichever of the above that gives Macca Ltd the highest entitlement. b. Intragroup dividends c. Goodwill d. Retained earning

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A:

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Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.