On 1 July 20X4 Joey Ltd acquired 25% of the shares of Leo Ltd for $100 000. At that date the equity of Leo Ltd was $400 000, with all identifiable assets and liabilities being measured at fair value. Profits/(losses) made since the date of acquisition are as follows:

There have been no dividends paid or movements in reserves since the date of acquisition.
At 30 June 20X6 the equity accounted balance of the investment in Leo was:

Question

On 1 July 20X4 Joey Ltd acquired 25% of the shares of Leo Ltd for $100 000. At that date the equity of Leo Ltd was $400 000, with all identifiable assets and liabilities being measured at fair value. Profits/(losses) made since the date of acquisition are as follows:

There have been no dividends paid or movements in reserves since the date of acquisition.
At 30 June 20X6 the equity accounted balance of the investment in Leo was:

Quizplus · Accepted Answer

The Answer of On 1 July 20X4 Joey Ltd acquired 25% of the shares of Leo Ltd for $100 000. At that date the equity of Leo Ltd was $400 000, with all identifiable assets and liabilities being measured at fair value. Profits/(losses) made since the date of acquisition are as follows:

There have been no dividends paid or movements in reserves since the date of acquisition.
At 30 June 20X6 the equity accounted balance of the investment in Leo was:

On 1 July 20X4 Joey Ltd Acquired 25% of the Shares