9. Tiger acquired 20% share capital of Deer on 1 August 2021 at the cost of £5.5million. Tiger has classified Deer as an associate undertaking. For the year ended 31 October 2021, Deer has reported a net profit of £937,500. What is the value of the associate investment in the group statement of financial position of Tiger as at 31 October 2021? A. £5,546,875 £6,125,000 £5,968,750 B. C. D. £5,500,000
9. Tiger acquired 20% share capital of Deer on 1 August 2021 at the cost of £5.5million. Tiger has classified Deer as an associate undertaking. For the year ended 31 October 2021, Deer has reported a net profit of £937,500. What is the value of the associate investment in the group statement of financial position of Tiger as at 31 October 2021? A. £5,546,875 £6,125,000 £5,968,750 B. C. D. £5,500,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![9.
Tiger acquired 20% share capital of Deer on 1 August 2021 at the cost of
£5.5million. Tiger has classified Deer as an associate undertaking. For the year
ended 31 October 2021, Deer has reported a net profit of £937,500.
What is the value of the associate investment in the group statement of
financial position of Tiger as at 31 October 2021?
A. £5,546,875
B. £6,125,000
C. £5,968,750
D. £5,500,000
10. Hyperverse plc acquired 80% of the share capital of Lyca plc on 1/10/2018 for
£340,600. The profit for the year ended 31/12/2018 for Lyca was £36,000.
Profits are deemed to accrue evenly over the year. At 31/12/2018 the following
extracts of the statement of financial position for Lyca has been provided:
Equity share capital
Retained earnings
What is the goodwill on acquisition?
A. £150,000
B. £184,650
C. £159,000
D. £177,000
£200,000
£180,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F68bd143b-b5a9-4975-a1bd-e82645417c98%2Fa7e58e51-5218-46c9-93c4-55fb8f7f5902%2F9q43qih_processed.jpeg&w=3840&q=75)
Transcribed Image Text:9.
Tiger acquired 20% share capital of Deer on 1 August 2021 at the cost of
£5.5million. Tiger has classified Deer as an associate undertaking. For the year
ended 31 October 2021, Deer has reported a net profit of £937,500.
What is the value of the associate investment in the group statement of
financial position of Tiger as at 31 October 2021?
A. £5,546,875
B. £6,125,000
C. £5,968,750
D. £5,500,000
10. Hyperverse plc acquired 80% of the share capital of Lyca plc on 1/10/2018 for
£340,600. The profit for the year ended 31/12/2018 for Lyca was £36,000.
Profits are deemed to accrue evenly over the year. At 31/12/2018 the following
extracts of the statement of financial position for Lyca has been provided:
Equity share capital
Retained earnings
What is the goodwill on acquisition?
A. £150,000
B. £184,650
C. £159,000
D. £177,000
£200,000
£180,000
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