On 1 July 2016 Titans Ltd acquired a 25% share of Taylor Ltd.At that date,the following assets had carrying amounts different to their fair values in Taylor's books.

All inventory was sold to third parties by 30 June 2017.On 1 July 2016,the machinery had a remaining useful life of 3 years.
The tax rate is 30%.
The adjustment required to the investment in associate account at 30 June 2017 in relation to the above assets is:
A)$1750.
B)$2500.
C)$7000.
D)$10 000.

Question

On 1 July 2016 Titans Ltd acquired a 25% share of Taylor Ltd.At that date,the following assets had carrying amounts different to their fair values in Taylor's books.

All inventory was sold to third parties by 30 June 2017.On 1 July 2016,the machinery had a remaining useful life of 3 years.
The tax rate is 30%.
The adjustment required to the investment in associate account at 30 June 2017 in relation to the above assets is:
A)$1750. 
B)$2500. 
C)$7000. 
D)$10 000.

Quizplus · Accepted Answer

The Answer of On 1 July 2016 Titans Ltd acquired a 25% share of Taylor Ltd.At that date,the following assets had carrying amounts different to their fair values in Taylor's books.

All inventory was sold to third parties by 30 June 2017.On 1 July 2016,the machinery had a remaining useful life of 3 years.
The tax rate is 30%.
The adjustment required to the investment in associate account at 30 June 2017 in relation to the above assets is:
A)$1750. 
B)$2500. 
C)$7000. 
D)$10 000.

On 1 July 2016 Titans Ltd Acquired a 25% Share