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On 1 July 2012,Felix Ltd Acquires All Shares in Oscar

Question 56

Multiple Choice

On 1 July 2012,Felix Ltd acquires all shares in Oscar Ltd for $800 000.The fair value of net assets acquired is $620 000 comprised of $400,000 in share capital and $220 000 in retained earnings.What is the appropriate elimination entry for this investment that is in accordance with AASB 3 "Business Combinations" and AASB 127 "Consolidated and Separate Financial Statements"?


A) On 1 July 2012,Felix Ltd acquires all shares in Oscar Ltd for $800 000.The fair value of net assets acquired is $620 000 comprised of $400,000 in share capital and $220 000 in retained earnings.What is the appropriate elimination entry for this investment that is in accordance with AASB 3 Business Combinations and AASB 127 Consolidated and Separate Financial Statements ? A) B) C) D) E) None of the given answers.
B) On 1 July 2012,Felix Ltd acquires all shares in Oscar Ltd for $800 000.The fair value of net assets acquired is $620 000 comprised of $400,000 in share capital and $220 000 in retained earnings.What is the appropriate elimination entry for this investment that is in accordance with AASB 3 Business Combinations and AASB 127 Consolidated and Separate Financial Statements ? A) B) C) D) E) None of the given answers.
C) On 1 July 2012,Felix Ltd acquires all shares in Oscar Ltd for $800 000.The fair value of net assets acquired is $620 000 comprised of $400,000 in share capital and $220 000 in retained earnings.What is the appropriate elimination entry for this investment that is in accordance with AASB 3 Business Combinations and AASB 127 Consolidated and Separate Financial Statements ? A) B) C) D) E) None of the given answers.
D) On 1 July 2012,Felix Ltd acquires all shares in Oscar Ltd for $800 000.The fair value of net assets acquired is $620 000 comprised of $400,000 in share capital and $220 000 in retained earnings.What is the appropriate elimination entry for this investment that is in accordance with AASB 3 Business Combinations and AASB 127 Consolidated and Separate Financial Statements ? A) B) C) D) E) None of the given answers.
E) None of the given answers.

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