On 1 July 20X0, Mobile Ltd Acquired 65% of Phone

Multiple Choice

On 1 July 20X0, Mobile Ltd acquired 65% of Phone Ltd for $1 500 000, when the shareholders' equity of Phone Ltd comprised: paid up capital of $1 000 000, retained profits of $500 000 and general reserve of $200 000.The control date fair value of the non-controlling shareholders' ownership interest was $780 000.On 1 July 20X1, Mobile Ltd acquired a further 10% of Phone Ltd for $250 000, when the shareholders' equity of Phone Ltd comprised paid up capital of $1 000 000, retained profits of $700 000 and general reserve of $200 000.At that date, the fair value of the non-controlling shareholders' ownership interest was $1 250 000.No dividends have been paid by Phone Ltd.
-How much paid-up capital is eliminated in the consolidation entry to eliminate pre-acquisition equity acquired by Mobile Ltd in the consolidation worksheet for the reporting period ending 30 June 20X2?

A) $650 000
B) $750 000
C) $800 000
D) $1 000 000