The Following Acquisition Analysis Relates to a Non-Sequential Acquisition, at the Time

question 14

Multiple Choice

The following acquisition analysis relates to a non-sequential acquisition, at the time that Ginger Ltd acquires a controlling interest (acquiring 60%) in Posh Ltd. Posh Ltd had previously acquitted 75% of Scary Ltd.

What are the figures represented by (c) and (d) in the table above?

• A) (a) $176,000; (b) $54,000.
• B) (a) $150,000; (b) $67,500.
• C) (a) $146,000; (b) $54,000.
• D) (a) $146,000; (b) $67,500.
• E) Cannot determine from the information provided.

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Definitions:

Interest Charge

The cost of borrowing money on a loan or earned on interest-bearing accounts, calculated as a percentage of the principal sum.

Compound Interest

Compound interest is interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan.

Future Value

The value of an investment at a specified future date, taking into account factors like interest rates and compounding.

Compounded Annually

Interest on an investment that is calculated once per year, adding to the principal amount for future interest calculations.