Nina acquired a 75% controlling interest in Pinta in two stages. 1) In 2012, Nina acquired 15% equity interest for cash consideration of $10,000. Nina classified the interest as available-for- sale under IAS 39. From 2012 to the end of 2014, Nina reported fair value increases of $2,000 in other comprehensive income (OCI) 2) On January 2014, Nina acquired a further 60% equity for a cash oration of $60.000 Nino identified: Dinto with fair
Nina acquired a 75% controlling interest in Pinta in two stages. 1) In 2012, Nina acquired 15% equity interest for cash consideration of $10,000. Nina classified the interest as available-for- sale under IAS 39. From 2012 to the end of 2014, Nina reported fair value increases of $2,000 in other comprehensive income (OCI) 2) On January 2014, Nina acquired a further 60% equity for a cash oration of $60.000 Nino identified: Dinto with fair
Chapter7: Deductions And Losses: Certain Business Expenses And Losses
Section: Chapter Questions
Problem 21CE
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Transcribed Image Text:08) Nina acquired a 75% controlling interest in Pinta in two stages.
1) In 2012, Nina acquired 15% equity interest for cash consideration
of $10,000. Nina classified the interest as available for- sale under IAS 39.
From 2012 to the end of 2014, Nina reported fair value increases of $2,000
in other comprehensive income (OCI)
2) On January 2014, Nina acquired a further 60% equity for a cash
consideration of $60,000. Nina identified net assets of Pinta with a fair
value of $80,000.
Nina elected to measure non-controlling interest at their share of net assets.
On the date of the acquisition, the previously-held 15% interest had a fair value
of $12,500.
Calculate the cost of investment that will be used in computing goodwill
Select one:
a.
$60,000
O b. $10,000
O c. $80,000
O d. $70,000
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