Mamagau Limited acquired 50% of the voting shares of Mashego Limited at 30 April 2015 at R160 000. The balance sheetof Mashego Limited showed the following balances at 30 April 2015: Non-current assets R450 000 Current assets R120 000 Non-current liabilities R240 000 Current liabilities R25 000 The year-end date for Mamagau Limited is on 30 April of every year. During the year ended 30 April 2016 MashegoLimited reported an after tax profit of R120 000. The directors of Mashego Limited declared an ordinary dividend of R20000 but not yet paid at reporting date. Mamagau Limited applies equity accounting method for its associates and jointventures. What is the portion of Mamagau Limited in the equity of Mashego Limited as at the acquisition date on 30 April 2015? Select one: a. R160 000 b. R152 500 c. R305 000 d. R470 000
Mamagau Limited acquired 50% of the voting shares of Mashego Limited at 30 April 2015 at R160 000. The balance sheetof Mashego Limited showed the following balances at 30 April 2015:
Non-current assets R450 000
Current assets R120 000
Non-current liabilities R240 000
Current liabilities R25 000
The year-end date for Mamagau Limited is on 30 April of every year. During the year ended 30 April 2016 MashegoLimited reported an after tax profit of R120 000. The directors of Mashego Limited declared an ordinary dividend of R20000 but not yet paid at reporting date. Mamagau Limited applies equity accounting method for its associates and jointventures.
What is the portion of Mamagau Limited in the equity of Mashego Limited as at the acquisition date on 30 April 2015?
Select one:
a.
R160 000
b.
R152 500
c.
R305 000
d.
R470 000
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