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Meat Ltd Purchased 100 Per Cent of the Issued Capital

Question 22

Multiple Choice

Meat Ltd purchased 100 per cent of the issued capital of Pie Ltd for a cash consideration of $1.7 million on 1 July 2004. At that time the fair value of the net assets of Pie Ltd were represented by:
Meat Ltd purchased 100 per cent of the issued capital of Pie Ltd for a cash consideration of $1.7 million on 1 July 2004. At that time the fair value of the net assets of Pie Ltd were represented by: Goodwill had been determined to have been impaired by $20,000 during the period. During the period ended 30 June 2005 Pie Ltd sold inventory that cost $450,000 for $620,000 to Meat Ltd. Twenty percent of this inventory remains on hand in Meat Ltd at the end of the year. Both companies use a perpetual inventory system. The taxation rate is 30 per cent. At the end of the period Pie Ltd declared a dividend of $45,000 that has not yet been paid. What consolidation journal entries are required for the period ending 30 June 2005? A) B) C) D) E) None of the given answers.
Goodwill had been determined to have been impaired by $20,000 during the period. During the period ended 30 June 2005 Pie Ltd sold inventory that cost $450,000 for $620,000 to Meat Ltd. Twenty percent of this inventory remains on hand in Meat Ltd at the end of the year. Both companies use a perpetual inventory system. The taxation rate is 30 per cent. At the end of the period Pie Ltd declared a dividend of $45,000 that has not yet been paid.
What consolidation journal entries are required for the period ending 30 June 2005?


A) Meat Ltd purchased 100 per cent of the issued capital of Pie Ltd for a cash consideration of $1.7 million on 1 July 2004. At that time the fair value of the net assets of Pie Ltd were represented by: Goodwill had been determined to have been impaired by $20,000 during the period. During the period ended 30 June 2005 Pie Ltd sold inventory that cost $450,000 for $620,000 to Meat Ltd. Twenty percent of this inventory remains on hand in Meat Ltd at the end of the year. Both companies use a perpetual inventory system. The taxation rate is 30 per cent. At the end of the period Pie Ltd declared a dividend of $45,000 that has not yet been paid. What consolidation journal entries are required for the period ending 30 June 2005? A) B) C) D) E) None of the given answers.
B) Meat Ltd purchased 100 per cent of the issued capital of Pie Ltd for a cash consideration of $1.7 million on 1 July 2004. At that time the fair value of the net assets of Pie Ltd were represented by: Goodwill had been determined to have been impaired by $20,000 during the period. During the period ended 30 June 2005 Pie Ltd sold inventory that cost $450,000 for $620,000 to Meat Ltd. Twenty percent of this inventory remains on hand in Meat Ltd at the end of the year. Both companies use a perpetual inventory system. The taxation rate is 30 per cent. At the end of the period Pie Ltd declared a dividend of $45,000 that has not yet been paid. What consolidation journal entries are required for the period ending 30 June 2005? A) B) C) D) E) None of the given answers.
C) Meat Ltd purchased 100 per cent of the issued capital of Pie Ltd for a cash consideration of $1.7 million on 1 July 2004. At that time the fair value of the net assets of Pie Ltd were represented by: Goodwill had been determined to have been impaired by $20,000 during the period. During the period ended 30 June 2005 Pie Ltd sold inventory that cost $450,000 for $620,000 to Meat Ltd. Twenty percent of this inventory remains on hand in Meat Ltd at the end of the year. Both companies use a perpetual inventory system. The taxation rate is 30 per cent. At the end of the period Pie Ltd declared a dividend of $45,000 that has not yet been paid. What consolidation journal entries are required for the period ending 30 June 2005? A) B) C) D) E) None of the given answers.
D) Meat Ltd purchased 100 per cent of the issued capital of Pie Ltd for a cash consideration of $1.7 million on 1 July 2004. At that time the fair value of the net assets of Pie Ltd were represented by: Goodwill had been determined to have been impaired by $20,000 during the period. During the period ended 30 June 2005 Pie Ltd sold inventory that cost $450,000 for $620,000 to Meat Ltd. Twenty percent of this inventory remains on hand in Meat Ltd at the end of the year. Both companies use a perpetual inventory system. The taxation rate is 30 per cent. At the end of the period Pie Ltd declared a dividend of $45,000 that has not yet been paid. What consolidation journal entries are required for the period ending 30 June 2005? A) B) C) D) E) None of the given answers.
E) None of the given answers.

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