John Ltd, an ultimate parent reporting entity, controls 65% of the ordinary voting shares of Daisy Ltd. Daisy Ltd has recently acquired a 10% interest in Wick Ltd. John Ltd has a 35% interest in Wick Ltd. What is the equity accounted interest in Wick Ltd that will be reported in the consolidated financial statements of John Ltd Group? Oa. 45% O b.40% O C. 30% O d. 35%

John Ltd, an ultimate parent reporting entity, controls 65% of the ordinary voting shares of Daisy Ltd. Daisy Ltd has recently acquired a 10% interest in Wick Ltd. John Ltd has a 35% interest in Wick Ltd. What is the equity accounted interest in Wick Ltd that will be reported in the consolidated financial statements of John Ltd Group? Oa. 45% O b.40% O C. 30% O d. 35%

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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No. 29
Aa.14.
X ltd owns 75% of Y Ltd. Y Ltd owns 40% of Z ltd. X Ltd also owns 30% of Z Ltd. The ownership interests in Z ltd were acquired when Z ltd was incorporated. The retained earnings of the three companies at 1 July 2016 and 30 June 2017 are as follows: X Ltd $ Y Ltd $ Z Ltd $ Retained earnings at acquisition date 40 000 12 000 8 000 Retained earnings 1 July 2016 50 000 15 000 10 000 Retained earnings 30 June 2017 60 000 20 000 16 000 The dividends paid/declared by group entities for the year ended 30 June 2017 were as follows: X Ltd $ Y Ltd $ Z Ltd $ Interim dividend paid 3,000 600 500 Final dividend declared 3,000 1,000 1000 Additional Information: During the year ended 30 June 2016, Z sold goods to Y Ltd for $200,000. These goods cost Z Ltd $180,000. 10% of these goods remained in Y’s inventory at 30 June 2016. During the year ended 30 June 2016, X sold goods to Z Ltd for $300,000. These goods cost Z Ltd $20,000. 25% of these goods remained in Z’s inventory at 30 June 2016. During the…
16) Rainbow Co. owns the following investment in other companies. Green Co. Red Co. Blue Co Select one: O a Green Co. O b. Red Co. Rainbow Co. also has appointed five of the seven directors of Blue Co. Which of the following investments are accounted for as subsidiaries in the consolidated accounts of F Co. c Od. Equity shares held 80% 25% 45% Green and Blue All of them Non-equity shares held nil 80% 25%
If the unrealized profit of sales from parent to a subsidiary is GHC2,000 and NCI in the subsidiary has 30% share interest, what amount of the unrealized profit is chargeable to the group's retained earnings? DA GHC2.000 B. GHC1400 OC GHC600 D. GHCO
Requirements: 7. What amount of non-controlling interest is to be presented in the consolidated statement offinancial position on December 31, 2x19?8. How much is the consolidated retained earnings attributable to Parent’s shareholder equity onDecember 31, 2x19?9. How much is the total consolidated assets on December 31, 2x19?
As at 31 December 20x8, A Ltd's net assets are represented by share capital of $500 million and retained profit of $500 million, B Ltd's net assets are represented by share capital of $200 million and retained profit of $500 million, and C Ltd's net assets are represented by share capital of $100 million and retained profit of $300 million. B Ltd acquired 70% of C Ltd in 20x5 when C Ltd's retained profit was $200 million. A Ltd acquired 80% of B Ltd in 20x6 when B Ltd's retained profit was $400 million and C Ltd's retained profit was $250 million. The amount of "non-controlling interest” in A Ltd's consolidated statement of financial position as at 31 December 20x8 should be: $260 million. $274 million. $270 million. None of the listed choices. $267 million.
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Determine the percentage owned by the parent.
Computing consolidated earnings per share (EPS) Assume the following facts about a parent and its 75% owned subsidiary company: Parent Net income Common shares outstanding Convertible preferred stock Convertible bonds $180,000 50,000 Dividends = $17,100 Convertible into 9,000 shares of common stock a. Compute basic earnings per share $ b. Compute diluted earnings per share LA Subsidiary $45,000 22,000 (16,500 = 75% owned by parent) Interest expense after tax = $7,200 Convertible into 4,500 shares of common stock
02) On 30 June 2010 Parent owns 80% of the share capital of Subsidiary. The non-controlling interest had a fair value of $1,300,000. Extract from the statements of financial position of Subsidiary at 30 June 2014 are shown below: Statement of financial position: Ordinary share Share premium Retained earnings Select one: O a. $1,220,000 O b. $1,300,000 O c. $1,480,000 O d. $1,400,000 30 June 2010 $ 1,000,000 400,000 4,700,000 Select one: O a. $225,000 O b. $228,800 O c. $223,400 O d. $255,300 What figure for non-controlling appear in the consolidated statement of financial position as at 30 June 20X6 11) On January 1, 2012 Peter Inc. acquired 80% of the outstanding common stock of Sam Co. for $540,000. Sam's net assets had a book value $600,000 on that date although equipment with a ten-year life having a book value of $10,000 had a fair market value of $30,000. Any remaining allocation is to go to goodwill. On December 31, 2012, Sam reports revenues of $125,000 and expenses of $50,000…
REQUIRED: Determine the percentage owned by the parent