Fan Ltd acquired a 60 per cent interest in Dance Ltd on 1 July 2002 for a cash consideration of $780,000.At that date the fair value of the net assets of Dance Ltd was represented by: On 30 June 2005 Fan Ltd sold all its shares in Dance Ltd for $880,000.At this date the fair value of the net assets of Dance Ltd was represented by:
The retained earnings of $350,000 include operating profit after tax of $20,000 from the current period.Impairment of goodwill was assessed at $5,400,the impairment having been incurred evenly across the last three years.The investment has not been marked to market during the period that the shares were held.What is the elimination entry required for the consolidated accounts?
E) None of the given answers.

Question

Fan Ltd acquired a 60 per cent interest in Dance Ltd on 1 July 2002 for a cash consideration of $780,000.At that date the fair value of the net assets of Dance Ltd was represented by:  On 30 June 2005 Fan Ltd sold all its shares in Dance Ltd for $880,000.At this date the fair value of the net assets of Dance Ltd was represented by:
 The retained earnings of $350,000 include operating profit after tax of $20,000 from the current period.Impairment of goodwill was assessed at $5,400,the impairment having been incurred evenly across the last three years.The investment has not been marked to market during the period that the shares were held.What is the elimination entry required for the consolidated accounts?
E) None of the given answers.

Quizplus · Accepted Answer

The Answer of Fan Ltd acquired a 60 per cent interest in Dance Ltd on 1 July 2002 for a cash consideration of $780,000.At that date the fair value of the net assets of Dance Ltd was represented by:  On 30 June 2005 Fan Ltd sold all its shares in Dance Ltd for $880,000.At this date the fair value of the net assets of Dance Ltd was represented by:
 The retained earnings of $350,000 include operating profit after tax of $20,000 from the current period.Impairment of goodwill was assessed at $5,400,the impairment having been incurred evenly across the last three years.The investment has not been marked to market during the period that the shares were held.What is the elimination entry required for the consolidated accounts?
E) None of the given answers.

Fan Ltd Acquired a 60 Per Cent Interest in Dance