Jabba Ltd Acquired a 70 Per Cent Interest in Han

question 37

Multiple Choice

Jabba Ltd acquired a 70 per cent interest in Han Ltd on 30 June 2012 for $2,000,000. On the same date, Han Ltd acquired a 60 per cent interest in Leia Ltd for a cash consideration of $1,600,000. The purchase price represents the fair value of consideration transferred for both investments
The share capital and retained earnings at the date of acquisition are as follows:

What is the non-controlling interest in Han Ltd and Leai Ltd, respectively on the date of acquisition using the partial goodwill method (round to the nearest dollar) ?

• A) $780,000; $960,000;
• B) $857,143; $1,066,667;
• C) $1,820,000; $1,440,000
• D) $2,000,000; $1,600,000;
• E) $2,857,143; $2,666,667.

---

Definitions:

Sodikoff

Refers to Genese Marie Sodikoff, an anthropologist noted for her work on conservation, labor, and the environmental impact of human activity, particularly in Madagascar.

Employment rates

A statistical measure representing the percentage of the labor force that is employed, often used as an indicator of economic health.

Canada

A country located in the northern part of North America, known for its vast landscapes, multicultural society, and bilingual official languages of English and French.

Subsistence pattern

The methods and strategies used by a society to support its population, including the ways in which food is obtained and distributed.