Spock Ltd Acquired a 10 Per Cent Holding in Kirk

Multiple Choice

Spock Ltd acquired a 10 per cent holding in Kirk Ltd on 1 July 2011 for $350,000 cash,being the fair value of consideration transferred. On 30 June 2012,Spock Ltd acquired a further 75 per cent of the contributed capital of Kirk Ltd for $3,300,000,which represents the fair value of consideration transferred.After the latest acquisition,Spock Ltd gained control of Kirk Ltd.The fair value of the net assets acquired and the liabilities assumed of Kirk Ltd at the acquisition date of 30 June 2012 was $3,500,000 and all assets were recorded at far value in the financial statements of Kirk Ltd.
Goodwill is also attributed to the non-controlling interest.
Based on the above information,which of the following accounting treatments is not in accordance with AASB 127?

A) Goodwill on acquisition of Kirk Ltd to be eliminated on consolidation is $765,000.
B) Gain on acquisition of additional investment in Kirk Ltd to be recognised in 2012 is $90,000.
C) Non-controlling interest in Kirk Ltd on 30 June 2012 is $660,000.
D) Investment in Kirk Ltd to be eliminated on 30 June 2012 is $3,740,000.
E) None of the given answers.