Investor Limited acquired a 30% interest in Investee Limited for $27 000. Investor holds other equity investments but does not prepare consolidated financial statements. Investee Limited revalued its buildings class of assets by $10 000 during the current financial period. The balance of the Investment in Associate account at the end of the current financial period is:

Question

Quizplus · Accepted Answer

Investor Limited's share of the revaluation is 30% of $10,000, which is $3,000. Adding this to the initial investment of $27,000 gives a balance of $30,000.

Investor Limited Acquired a 30% Interest in Investee Limited for $27