Quark acquired 70% of the 1m issued £1 ordinary shares of Whey on 1 January 20X1 when Whey's retained earnings were £1,500,000. The group measures non-controlling interest (NCI) at fair value at the acquisition date. The FV of the NCI of Whey as at 1 January 20X1 was £1,325,000. An impairment review performed at 31 December 20X1 indicated that goodwill on the acquisition of Whey had impaired by £425,000. The retained earnings of Whey at 31 December 20X1 were £2,750,000. The NCI to be included in the consolidated statement of financial position at 31 December 20X1 will be: O a. £1,275,000 O b. £997,500 O c. £1,572,500 O d. None of these options are correct O e. £1,700,000 O f. £2,150,000 O g. £2,022,500

Quark acquired 70% of the 1m issued £1 ordinary shares of Whey on 1 January 20X1 when Whey's retained earnings were £1,500,000. The group measures non-controlling interest (NCI) at fair value at the acquisition date. The FV of the NCI of Whey as at 1 January 20X1 was £1,325,000. An impairment review performed at 31 December 20X1 indicated that goodwill on the acquisition of Whey had impaired by £425,000. The retained earnings of Whey at 31 December 20X1 were £2,750,000. The NCI to be included in the consolidated statement of financial position at 31 December 20X1 will be: O a. £1,275,000 O b. £997,500 O c. £1,572,500 O d. None of these options are correct O e. £1,700,000 O f. £2,150,000 O g. £2,022,500

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter20: Corporations: Distributions In Complete Liquidation And An Overview Of Reorganizations

Section: Chapter Questions

Problem 38P

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