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On 1 July 2012, Bob Ltd Acquires All Shares in Ted

Question 69

Multiple Choice

On 1 July 2012, Bob Ltd acquires all shares in Ted Ltd for $600 000. The fair value of net assets acquired is $500 000 comprised of $400,000 in share capital and $100 000 in retained earnings. What is the appropriate elimination entry for this investment that is in accordance with AASB 3 "Business Combinations" and AASB 127 "Consolidated and Separate Financial Statements"?


A) On 1 July 2012, Bob Ltd acquires all shares in Ted Ltd for $600 000. The fair value of net assets acquired is $500 000 comprised of $400,000 in share capital and $100 000 in retained earnings. What is the appropriate elimination entry for this investment that is in accordance with AASB 3 Business Combinations and AASB 127 Consolidated and Separate Financial Statements ? A) B) C) D) E) None of the given answers.
B) On 1 July 2012, Bob Ltd acquires all shares in Ted Ltd for $600 000. The fair value of net assets acquired is $500 000 comprised of $400,000 in share capital and $100 000 in retained earnings. What is the appropriate elimination entry for this investment that is in accordance with AASB 3 Business Combinations and AASB 127 Consolidated and Separate Financial Statements ? A) B) C) D) E) None of the given answers.
C) On 1 July 2012, Bob Ltd acquires all shares in Ted Ltd for $600 000. The fair value of net assets acquired is $500 000 comprised of $400,000 in share capital and $100 000 in retained earnings. What is the appropriate elimination entry for this investment that is in accordance with AASB 3 Business Combinations and AASB 127 Consolidated and Separate Financial Statements ? A) B) C) D) E) None of the given answers.
D) On 1 July 2012, Bob Ltd acquires all shares in Ted Ltd for $600 000. The fair value of net assets acquired is $500 000 comprised of $400,000 in share capital and $100 000 in retained earnings. What is the appropriate elimination entry for this investment that is in accordance with AASB 3 Business Combinations and AASB 127 Consolidated and Separate Financial Statements ? A) B) C) D) E) None of the given answers.
E) None of the given answers.

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