On November 1 20X6,a Parent Entity Helios Ltd Acquired 25

Multiple Choice

On November 1 20X6,a parent entity Helios Ltd acquired 25% (500,000 shares) of the share capital of Havers Ltd and the power to significantly influence the operating and financial policies of that company for $4,000,000 cash.In the period from the date of acquisition to June 30 20X7,Havers Ltd earned a profit for the period of $500,000 (after tax of $200,000) and declared a dividend of $100,000.At June 30 20X7,Helios Ltd recognised its equity in the dividend.At June 30 20X7,the quoted market value of the shares in Havers was $10 per share.At June 30 20X7,in the separate balance sheet of Helios Ltd and in the consolidated balance sheet of the group controlled by Helios Ltd,the investment in Havers Ltd would be reported as:

A) $4,000,000 and $4,100,000 respectively.
B) $5,000,000 and $4,100,000 respectively.
C) $5,000,000 and $5,100,000 respectively.
D) None of the above.