Hlayisani Ltd acquired 60% of the voting shares of the Mashele Ltd on 31 January 2014 for R65 000 when the items ofequity in the books of Mashele Ltd on that date were retained income of R45 000, revaluation surplus of R10 000 andshare capital of R58 000. Calculate the portion of minority shareholders if any. Select one: a. R45 200 b. R27 200 c. R67 800 d. R41 200
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Hlayisani Ltd acquired 60% of the voting shares of the Mashele Ltd on 31 January 2014 for R65 000 when the items ofequity in the books of Mashele Ltd on that date were retained income of R45 000, revaluation surplus of R10 000 andshare capital of R58 000. Calculate the portion of minority shareholders if any.
Select one:
a.
R45 200
b.
R27 200
c.
R67 800
d.
R41 200
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- Hlayisani Ltd acquired 60% of the voting shares of the Mashele Ltd on 31 January 2014 for R65 000 when the items ofequity in the books of Mashele Ltd on that date were retained income of R45 000, revaluation surplus of R10 000 andshare capital of R58 000. What is the relationship between Hlayisani Ltd and Mashele Ltd? Select one: a. Venturer and joint venture. b. Investor and associate. c. Parent and subsidiary. d. Venturer and joint operation.Alpha Ltd acquired 30% of the voting shares of Beta Ltd on 1 July 2021 for $150 000. This acquisition resulted in Alpha Ltd having significant influence over Beta Ltd. At the date of acquisition, the shareholder’s equity of Beta is as follows: Share capital 350 000 Retained profits 50 000 400 000 The following information relates to Beta Ltd as at 30 June 2022, the end of financial year FY2022: Profit for FY2022 90 000 Dividend paid out of the profit of FY2022 50 000 Asset revaluation reserve 25 000 Additional information: Mu Ltd is 100% owned by Alpha Ltd and is Alpha’s subsidiary. During FY2022, Beta sold $100 000 of inventories to Mu Ltd and made profit of $40 000. As at 30 June 2022, 20% of the inventories were still held by Mu Ltd. Required: a) Prepare journal entries for Alpha Ltd in FY2022 to account for its investment in Beta Ltd using the Equity Method. Use the Reclassification Method to account for the profit and…Warsaw Ltd acquired 60% of the ordinary shares of Krakow Ltd on 1 September 2020 when the issued share capital of Krakow Ltd was €3 million and its retained earnings €1 million. The consideration is as follows: The issue of one million ordinary €1 shares in Warsaw Ltd at market value €2.20; A cash payment of €330,000. The non-controlling interests in the net assets of Krakow Ltd as at 1 September 2020 is valued at €1,650,000. Required: Calculate the following as at 1 September 2020: Goodwill Non-controlling interests
- Unicorn Ltd acquired 80% of the issued shares of Pegasus Ltd for $685,700 on 1 July 2020. The financial statements of Pegasus Ltd showed the following items of equity: Share capital $565,500 Retained earnings $247,400 At acquisition date all the identificable assets and liabilities of Pegasus Ltd were recorded at amounts equal to fair value except for the following: Carrying amount Fair value Land $395,900 $424,100 During the year end 30 June 2021, Pegasus Ltd recorded at profit of $84,800. The tax rate is 30%. Required: Show the acquisition analysis as at 1 July 2020 and prepare the consolidated worksheet entries at 30 June 2021 for Unicorn Ltd assuming that it adopts the partial goodwill method.Madari Ltd purchased 100% of the shares of Concerto Ltd on 1 July 2020 for $70,000. On the date of acquisition, the equity of the two entities was as follows: Madari Ltd($) Concerto Ltd ($) General Reserve 25,000 5,500 Retained Earnings 4,500 3,300 Share Capital 60,000 38,000 At 1 July 2020, all of the identifiable assets and liabilities of Concerto Ltd were recorded at fair value except for the following: Carrying Amount ($) Fair Value ($) Inventory 3,000 4,500 Plant and Equipment 60,000 65,000 The plant and equipment had a further 5-year useful life. Any valuation adjustments are made on…Daniel Ltd purchased 75 per cent of the issued capital and in the process gained control over Riccardo Ltd on 1 July 2020. The fair value of the net assets of Riccardo Ltd at purchase was represented by: Share Capital $3,760,000 Retained Earnings 1,320,000 Daniel Ltd paid cash consideration of $4 000 000 for Riccardo Ltd. During the period ended 30 June 2021, Riccardo Ltd paid management fees of $540 000 to Daniel Ltd and Riccardo Ltd had an operating profit of $980 000. Riccardo Ltd's opening retained earnings at the beginning of the period were $1 460 000. At the end of the period Riccardo Ltd declared a dividend of $90 000. There were no other inter-company transactions. Goodwill was determined to have been impaired by $19 000 during the period. Companies in the group accrue dividends when they are declared by subsidiaries.For the period ended 30 June 2021, what consolidation journal entries are required and what is the non-controlling interest?
- Hard Ltd acquired 3,200,000of the ordinary shares of Soft Ltd on 1stOctober 2010.The consideration was agreed as follows: GHC5 million immediate cash payment and additional GHC1 million to be settled on 1stOctober 2013. A year later, Hard Ltd acquired 800,000 of the ordinary shares of Active Ltd for GHC1,600,000. The cost of capital to Hard Ltd is 25% per annum. The statements of financial position of the three companies as at 30thSeptember 2012 are as follows: Hard LtdGHC000Soft LtdGHC000Active LtdGHC000Non Current Assets: Patent Freehold land Plant Investments: In Soft Ltd In Active Ltd In others5005,1202,8405,0001,60030015,3608402,8001,800--4005,840-1,6001,080--1202,800Current Assets: Inventories Accounts receivable Bank 1,140840-__1,9808007603001,8606008002401,640Current Liabilities: Accounts payable Taxation Bank overdraft 1,1006801601,940660240-900560120-680NetCurrent Assets Deferred tax Net assets Equity: Stated capital Ordinary shares (issued at GHC0.50)Capital surplus Income…On 1 July 2020, Kent Ltd acquired all the share capital (Ex-dividend) of Sub Ltd for $500,000. The financial statements of Kent Ltd showed the equity of Sub Ltd at that date to be: Share capital — 60 000 $5 shares $300 000 General reserve 40 000 Retained earnings 90 000 All the assets and liabilities of Sub Ltd were recorded at amounts equal to their fair values at that date except the following: Carrying Amount Fair value Land $150 000 $170 000 Plant (Cost $400 000) $300 000 $350 000 Inventory $75 000 $80 000 Additional information: On 10 September 2020, Sub Ltd paid interim cash dividend of $10,000. At acquisition date, 1 July 2020, Sub Ltd has an unrecorded Patent that has a fair value of $20,000, and a Contingent Liability that has a fair value of $15 000. Plant has expected to have a further 5-year life. The tax rate…On 1 July 2016, A Ltd acquired 80% of the issued shares of B Ltd for $190 000. At this date, the equity of B Ltd was: Share capital General reserve Retained earnings $ 100 000 50 000 60 000 At acquisition date . At 30 June 2018, the equity of B Ltd consisted of: Share capital General reserve Retained earnings $ 100 000 70 000 90 000 During the 2017–18 year B Ltd recorded a profit of $20 000. At 1 July 2016, the fair value of the non-controlling interest was $45 000 and A Ltd adopts the full goodwill method. Required: Prepare the acquisition analysis (without any consolidation entries) please answer complete and working note