RST has net assets of £450,000 and owns 30% of TUV. In the year TUV had reported profits of £40,000 together with shareholder funds of £120,000. When reporting its group results, RST's net assets will increase by A) £12,000 B) £24,000 C) £36,000 D) £48,000 Plant costing £60,000 at VWX is halfway through a 12-year life when it sustains damage. Experts concur that remaining life will be 3 years with value-in-use of £24,000. Following impairment loss, annual depreciation charges will be A) £4,000 B) £6,000 C) £8,000 D) £10,000 Operating profit at GHI was £65,000 this year. Net assets were £324,000 & the company company is ungeared. If current liabilities are £68,000, the Return on Capital Employed will be A) 15% B) 20% C) 23% D) 25% JKL was acquired for cash by MNO when net assets were £120,000. Plant was revalued by £40,000 at the time of acquisition. JKL paid £148,000 to purchase 80% of MNO. The non-controlling (minority) interests were A) £32,000 B) £24,000 시티이미 C) £20,000 £18,000 D) After renovation, STU revalued a warehouse by £120,000. The building's life of 50 years was extended by 12 years following these improvements. Originally costing £500,000 & halfway through its useful life before refurbishment, annual depreciation charges will be A) ABCD £16,750 B) £12,400 £10,000 C) £ 8,000
RST has net assets of £450,000 and owns 30% of TUV. In the year TUV had reported profits of £40,000 together with shareholder funds of £120,000. When reporting its group results, RST's net assets will increase by A) £12,000 B) £24,000 C) £36,000 D) £48,000 Plant costing £60,000 at VWX is halfway through a 12-year life when it sustains damage. Experts concur that remaining life will be 3 years with value-in-use of £24,000. Following impairment loss, annual depreciation charges will be A) £4,000 B) £6,000 C) £8,000 D) £10,000 Operating profit at GHI was £65,000 this year. Net assets were £324,000 & the company company is ungeared. If current liabilities are £68,000, the Return on Capital Employed will be A) 15% B) 20% C) 23% D) 25% JKL was acquired for cash by MNO when net assets were £120,000. Plant was revalued by £40,000 at the time of acquisition. JKL paid £148,000 to purchase 80% of MNO. The non-controlling (minority) interests were A) £32,000 B) £24,000 시티이미 C) £20,000 £18,000 D) After renovation, STU revalued a warehouse by £120,000. The building's life of 50 years was extended by 12 years following these improvements. Originally costing £500,000 & halfway through its useful life before refurbishment, annual depreciation charges will be A) ABCD £16,750 B) £12,400 £10,000 C) £ 8,000
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
Problem 1PS
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Transcribed Image Text:RST has net assets of £450,000 and owns 30% of TUV. In the year TUV had reported
profits of £40,000 together with shareholder funds of £120,000. When reporting its group
results, RST's net assets will increase by
A) £12,000
B) £24,000
C) £36,000
D) £48,000
Plant costing £60,000 at VWX is halfway through a 12-year life when it sustains damage.
Experts concur that remaining life will be 3 years with value-in-use of £24,000. Following
impairment loss, annual depreciation charges will be
A) £4,000
B) £6,000
C) £8,000
D) £10,000
Operating profit at GHI was £65,000 this year. Net assets were £324,000 & the company
company is ungeared. If current liabilities are £68,000, the Return on Capital Employed
will be
A) 15%
B) 20%
C) 23%
D) 25%
JKL was acquired for cash by MNO when net assets were £120,000. Plant was revalued
by £40,000 at the time of acquisition. JKL paid £148,000 to purchase 80% of MNO. The
non-controlling (minority) interests were
A) £32,000
B) £24,000
시티이미
C) £20,000
£18,000
D)
After renovation, STU revalued a warehouse by £120,000. The building's life of 50 years
was extended by 12 years following these improvements. Originally costing £500,000 &
halfway through its useful life before refurbishment, annual depreciation charges will be
A)
ABCD
£16,750
B) £12,400
£10,000
C)
£ 8,000
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