Multiple Choice
On 1 January 20X2 A Ltd acquired all the issued shares in B Ltd.At that date the inventory of B Ltd had a carrying amount of $5 000 less than its fair value.The inventory was all sold by 30 June 20X4.At 30 June 20X5 the consolidation adjustment against inventory in relation to the transaction will be:
A) a debit of $5 000
B) a credit of $5 000
C) a debit of $3 500
D) nothing
Correct Answer:
Verified
Correct Answer:
Verified
Q7: Entity A and Entity B agree to
Q8: Parent Limited acquired 100% of a subsidiary
Q9: Eeny Limited has two subsidiary entities,Meeny Limited
Q10: On 1 July 20X6 Possum acquired a
Q11: A Limited acquired B Limited for $110
Q13: In relation to pre-acquisition of a subsidiary
Q14: One year after acquisition date,the goodwill acquired
Q15: When preparing consolidated financial statements,adjustments for pre-acquisition
Q16: The key principle relating to the disclosure
Q17: Explain why revaluations of the assets of