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 investment in subsidiary in the separate statement of financial position for Mashego Limited at 30 April 2016? Select one: O a R108 000 O b. R112 000 O c R144 000 O d. R216 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 investment in subsidiary in the separate statement of financial position for Mashego Limited at 30 April 2016? Select one: O a R108 000 O b. R112 000 O c R144 000 O d. R216 000

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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