On 1 July 2004 Girls Ltd Acquired 25% of the Shares

Multiple Choice

On 1 July 2004 Girls Ltd acquired 25% of the shares of Spice Ltd for $200 000.At that date the equity of Spice Ltd was $800 000,with all identifiable assets and liabilities being measured at fair value.Profits/(losses) made since the date of acquisition are as follows.

There have been no dividends paid or movements in reserves since the date of acquisition.
At 30 June 2008 the equity accounted balance of the investment in Spice was:

A) nil.
B) ($7000) .
C) $8000.
D) $32 000.