Question

On the 28/02/x2, a parent acquires 100% of the share capital of a subsidiary entity. At the group's year-end date of 30/06/x2, the subsidiary recognized profits totaling R 1,485,000 for the financial year. Calculate the subsidiary post-acquisition profits to be included in the group's retained earnings upon consolidation. - 459,000 - 540,000 - 450,000 - 495,000

Name: on the 2802x2 a parent acquires 100 of the share capital of a subsidiary entityat the groups year end date of 3006x2 the subsidairy recognized profits totaling r 1 485 000 for the financial 38865
Uploaded: 2023-09-01T00:55:46-08:00
Duration: 2 min 6 s
Channel: Oluwadamilola Ameobi
Description: on the 2802x2 a parent acquires 100 of the share capital of a subsidiary entityat the groups year end date of 3006x2 the subsidairy recognized profits totaling r 1 485 000 for the financial 38865

          On the 28/02/x2, a parent acquires 100% of the share capital of a subsidiary entity. At the group's year-end date of 30/06/x2, the subsidiary recognized profits totaling R 1,485,000 for the financial year. Calculate the subsidiary post-acquisition profits to be included in the group's retained earnings upon consolidation.
- 459,000
- 540,000
- 450,000
- 495,000

Added by Veronica C.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Oluwadamilola Ameobi

09/01/2023

Step 1

The parent acquired the subsidiary on 28/02/x2, and the group's year-end date is 30/06/x2. Therefore, the post-acquisition period is from 28/02/x2 to 30/06/x2. Show more…

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On the 28/02/x2, a parent acquires 100% of the share capital of a subsidiary entity. At the group's year-end date of 30/06/x2, the subsidiary recognized profits totaling R 1,485,000 for the financial year. Calculate the subsidiary post-acquisition profits to be included in the group's retained earnings upon consolidation. - 459,000 - 540,000 - 450,000 - 495,000