Mokwena Limited acquired 48% investment in Masibi Limited at R100 000. At the date of acquisition, which is 31 March 2016, Masibi Limited's statement of financial position showed the following balances: Non-current assets R692 000 Current assets R44 000 Non-current liabilities Current liabilities R268 000 R218 000 Mokwena Limited applies equity accounting for all its investments in associates and joint ventures. The financial year-end for Mokwena Limited is on 31 March of each year. Assuming that Mokwena Limited acquired the 48% in Masibi Limited at R125 000 instead of R100 000. What amount will be recorded as investment in associate in Mokwena Limited's statement of financial position as at 31 March 2016? Select one: O a. R125 000 O b. R120 000 O C R250 000 O d. R100 000
Mokwena Limited acquired 48% investment in Masibi Limited at R100 000. At the date of acquisition, which is 31 March 2016, Masibi Limited's statement of financial position showed the following balances: Non-current assets R692 000 Current assets R44 000 Non-current liabilities Current liabilities R268 000 R218 000 Mokwena Limited applies equity accounting for all its investments in associates and joint ventures. The financial year-end for Mokwena Limited is on 31 March of each year. Assuming that Mokwena Limited acquired the 48% in Masibi Limited at R125 000 instead of R100 000. What amount will be recorded as investment in associate in Mokwena Limited's statement of financial position as at 31 March 2016? Select one: O a. R125 000 O b. R120 000 O C R250 000 O d. R100 000
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
Problem 29E
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Transcribed Image Text:Mokwena Limited acquired 48% investment in Masibi Limited at R100 000. At the date of acquisition, which is 31 March 2016, Masibi Limited's statement of financial position
showed the following balances:
Non-current assets
R692 000
Current assets
R44 000
Non-current liabilities
R268 000
Current liabilities
R218 000
Mokwena Limited applies equity accounting for all its investments in associates and joint ventures. The financial year-end for Mokwena Limited is on 31 March of each year.
Assuming that Mokwena Limited acquired the 48% in Masibi Limited at R125 000 instead of R100 000. What amount will be recorded as investment in associate in Mokwena
Limited's statement of financial position as at 31 March 2016?
Select one:
O a. R125 000
O b. R120 000
O . R250 000
O d. R100 000
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Mokwena Limited acquired 48% investment in Masibi Limited at R100 000. At the date of acquisition, which is 31 March2016, Masibi Limited’s
Non-current assets R692 000
Current assets R44 000
Non-current liabilities R268 000
Current liabilities R218 000
Mokwena Limited applies equity accounting for all its investments in associates and joint ventures. The financial year-endfor Mokwena Limited is on 31 March of each year.
What amount will be recorded as investment in associate in Mokwena Limited’s statement of financial position as at 31March 2016?
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