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French Ltd Purchased 100 Per Cent of the Issued Capital

Question 28

Multiple Choice

French Ltd purchased 100 per cent of the issued capital of Pastry Ltd for a cash consideration of $2.1 million on 1 July 2005. At that time the fair value of the net assets of Pastry Ltd were represented by:
French Ltd purchased 100 per cent of the issued capital of Pastry Ltd for a cash consideration of $2.1 million on 1 July 2005. At that time the fair value of the net assets of Pastry Ltd were represented by: Goodwill had been determined to have been impaired by $ 5000 during the period. During the period ended 30 June 2006 Pastry Ltd sold inventory that cost $190,000 for $300,000 to French Ltd. Sixty percent of this inventory remains on hand in French Ltd at the end of the year. Both companies use a perpetual inventory system. The taxation rate is 30 per cent. What consolidation journal entries are required for the period ending 30 June 2006? A) B) C) D) E) None of the given answers.
Goodwill had been determined to have been impaired by $ 5000 during the period. During the period ended 30 June 2006 Pastry Ltd sold inventory that cost $190,000 for $300,000 to French Ltd. Sixty percent of this inventory remains on hand in French Ltd at the end of the year. Both companies use a perpetual inventory system. The taxation rate is 30 per cent.
What consolidation journal entries are required for the period ending 30 June 2006?


A) French Ltd purchased 100 per cent of the issued capital of Pastry Ltd for a cash consideration of $2.1 million on 1 July 2005. At that time the fair value of the net assets of Pastry Ltd were represented by: Goodwill had been determined to have been impaired by $ 5000 during the period. During the period ended 30 June 2006 Pastry Ltd sold inventory that cost $190,000 for $300,000 to French Ltd. Sixty percent of this inventory remains on hand in French Ltd at the end of the year. Both companies use a perpetual inventory system. The taxation rate is 30 per cent. What consolidation journal entries are required for the period ending 30 June 2006? A) B) C) D) E) None of the given answers.
B) French Ltd purchased 100 per cent of the issued capital of Pastry Ltd for a cash consideration of $2.1 million on 1 July 2005. At that time the fair value of the net assets of Pastry Ltd were represented by: Goodwill had been determined to have been impaired by $ 5000 during the period. During the period ended 30 June 2006 Pastry Ltd sold inventory that cost $190,000 for $300,000 to French Ltd. Sixty percent of this inventory remains on hand in French Ltd at the end of the year. Both companies use a perpetual inventory system. The taxation rate is 30 per cent. What consolidation journal entries are required for the period ending 30 June 2006? A) B) C) D) E) None of the given answers.
C) French Ltd purchased 100 per cent of the issued capital of Pastry Ltd for a cash consideration of $2.1 million on 1 July 2005. At that time the fair value of the net assets of Pastry Ltd were represented by: Goodwill had been determined to have been impaired by $ 5000 during the period. During the period ended 30 June 2006 Pastry Ltd sold inventory that cost $190,000 for $300,000 to French Ltd. Sixty percent of this inventory remains on hand in French Ltd at the end of the year. Both companies use a perpetual inventory system. The taxation rate is 30 per cent. What consolidation journal entries are required for the period ending 30 June 2006? A) B) C) D) E) None of the given answers.
D) French Ltd purchased 100 per cent of the issued capital of Pastry Ltd for a cash consideration of $2.1 million on 1 July 2005. At that time the fair value of the net assets of Pastry Ltd were represented by: Goodwill had been determined to have been impaired by $ 5000 during the period. During the period ended 30 June 2006 Pastry Ltd sold inventory that cost $190,000 for $300,000 to French Ltd. Sixty percent of this inventory remains on hand in French Ltd at the end of the year. Both companies use a perpetual inventory system. The taxation rate is 30 per cent. What consolidation journal entries are required for the period ending 30 June 2006? A) B) C) D) E) None of the given answers.
E) None of the given answers.

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