On July 1 20X5,Helios Ltd acquired all of the share capital of Havers Pty Ltd (100,000 shares)for $10 per share.During the year ended June 30 20X6,Helios Ltd received a dividend from Havers Ltd of $60,000; a dividend which had been declared by the directors of Havers Ltd in the year ended June 30 20X5 and was not subject to ratification by the shareholders of Havers Ltd.During the year ended June 30 20X6,Helios Ltd received an interim dividend of $40,000 from Havers Ltd and the directors of Havers Ltd declared a final dividend of $60,000.At June 30 20X6,The directors estimated that the fair value of the shares in Havers Ltd was only $9 per share at that date,but the estimated fall in value was considered to be only temporary and the carrying amount of the investment had not been impaired. At the date of acquisition,July 1 20X5,the shareholders' equity of Havers Ltd was (amounts in thousands):

At the date of acquisition,the carrying amounts of the net assets of Havers Ltd approximated fair value.If a consolidated balance sheet were to be prepared for Helios Ltd and its subsidiaries at the date of acquisition,the consolidation adjustment to eliminate the investment in the subsidiary would be:
A)

D) None of the above

A Parent and Its Subsidiary Adopt Different Bases for Measuring

Multiple Choice

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