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Spock Ltd Acquired a 10 Per Cent Holding in Kirk

Question 39

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Spock Ltd acquired a 10 per cent holding in Kirk Ltd on 1 July 2011 for $350,000 cash, being the fair value of consideration transferred.
On 30 June 2012, Spock Ltd acquired a further 75 per cent of the contributed capital of Kirk Ltd for $3,300,000, which represents the fair value of consideration transferred. After the latest acquisition, Spock Ltd gained control of Kirk Ltd. The fair value of the net assets acquired and the liabilities assumed of Kirk Ltd at the acquisition date of 30 June 2012 was $3,500,000 and all assets were recorded at far value in the financial statements of Kirk Ltd.
At that date fair value of the net assets of Kirk Ltd were represented by:
Spock Ltd acquired a 10 per cent holding in Kirk Ltd on 1 July 2011 for $350,000 cash, being the fair value of consideration transferred. On 30 June 2012, Spock Ltd acquired a further 75 per cent of the contributed capital of Kirk Ltd for $3,300,000, which represents the fair value of consideration transferred. After the latest acquisition, Spock Ltd gained control of Kirk Ltd. The fair value of the net assets acquired and the liabilities assumed of Kirk Ltd at the acquisition date of 30 June 2012 was $3,500,000 and all assets were recorded at far value in the financial statements of Kirk Ltd. At that date fair value of the net assets of Kirk Ltd were represented by: Goodwill is also attributed to the non-controlling interest. What is the consolidation entry to eliminate the investment in Kirk Ltd on consolidation for the financial year ended 30 June 2012? A) B) C) D) E) None of the given answers.
Goodwill is also attributed to the non-controlling interest.
What is the consolidation entry to eliminate the investment in Kirk Ltd on consolidation for the financial year ended 30 June 2012?


A) Spock Ltd acquired a 10 per cent holding in Kirk Ltd on 1 July 2011 for $350,000 cash, being the fair value of consideration transferred. On 30 June 2012, Spock Ltd acquired a further 75 per cent of the contributed capital of Kirk Ltd for $3,300,000, which represents the fair value of consideration transferred. After the latest acquisition, Spock Ltd gained control of Kirk Ltd. The fair value of the net assets acquired and the liabilities assumed of Kirk Ltd at the acquisition date of 30 June 2012 was $3,500,000 and all assets were recorded at far value in the financial statements of Kirk Ltd. At that date fair value of the net assets of Kirk Ltd were represented by: Goodwill is also attributed to the non-controlling interest. What is the consolidation entry to eliminate the investment in Kirk Ltd on consolidation for the financial year ended 30 June 2012? A) B) C) D) E) None of the given answers.
B) Spock Ltd acquired a 10 per cent holding in Kirk Ltd on 1 July 2011 for $350,000 cash, being the fair value of consideration transferred. On 30 June 2012, Spock Ltd acquired a further 75 per cent of the contributed capital of Kirk Ltd for $3,300,000, which represents the fair value of consideration transferred. After the latest acquisition, Spock Ltd gained control of Kirk Ltd. The fair value of the net assets acquired and the liabilities assumed of Kirk Ltd at the acquisition date of 30 June 2012 was $3,500,000 and all assets were recorded at far value in the financial statements of Kirk Ltd. At that date fair value of the net assets of Kirk Ltd were represented by: Goodwill is also attributed to the non-controlling interest. What is the consolidation entry to eliminate the investment in Kirk Ltd on consolidation for the financial year ended 30 June 2012? A) B) C) D) E) None of the given answers.
C) Spock Ltd acquired a 10 per cent holding in Kirk Ltd on 1 July 2011 for $350,000 cash, being the fair value of consideration transferred. On 30 June 2012, Spock Ltd acquired a further 75 per cent of the contributed capital of Kirk Ltd for $3,300,000, which represents the fair value of consideration transferred. After the latest acquisition, Spock Ltd gained control of Kirk Ltd. The fair value of the net assets acquired and the liabilities assumed of Kirk Ltd at the acquisition date of 30 June 2012 was $3,500,000 and all assets were recorded at far value in the financial statements of Kirk Ltd. At that date fair value of the net assets of Kirk Ltd were represented by: Goodwill is also attributed to the non-controlling interest. What is the consolidation entry to eliminate the investment in Kirk Ltd on consolidation for the financial year ended 30 June 2012? A) B) C) D) E) None of the given answers.
D) Spock Ltd acquired a 10 per cent holding in Kirk Ltd on 1 July 2011 for $350,000 cash, being the fair value of consideration transferred. On 30 June 2012, Spock Ltd acquired a further 75 per cent of the contributed capital of Kirk Ltd for $3,300,000, which represents the fair value of consideration transferred. After the latest acquisition, Spock Ltd gained control of Kirk Ltd. The fair value of the net assets acquired and the liabilities assumed of Kirk Ltd at the acquisition date of 30 June 2012 was $3,500,000 and all assets were recorded at far value in the financial statements of Kirk Ltd. At that date fair value of the net assets of Kirk Ltd were represented by: Goodwill is also attributed to the non-controlling interest. What is the consolidation entry to eliminate the investment in Kirk Ltd on consolidation for the financial year ended 30 June 2012? A) B) C) D) E) None of the given answers.
E) None of the given answers.

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