Jabba Ltd Acquired a 70 Per Cent Interest in Han

question 28

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 following information is available:

No dividends have been declared since acquisition and there were no intragroup transactions during the year.
What is the non-controlling interest in Han Ltd and Leai Ltd as at 30 June 2013, respectively using the partial goodwill method (round to the nearest dollar) ?

• A) $780,000; $960,000;
• B) $857,143; 1,066,667;
• C) $900,000; $1,134,000
• D) $977,143; $1,240,667;
• E) $2,857,143; $2,666,667.

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Definitions:

Human Resource Indicator

A metric or measure used to assess and analyze factors related to the management of personnel within an organization.

Stock Price

The cost of purchasing a share of a company as quoted on the stock market, reflecting the market's valuation of the company at a given time.

General Labor Cost

Refers to the total expenses associated with employing labor, including wages, benefits, and other related costs.

Market Share

The portion of a market controlled by a particular company or product, often expressed as a percentage of total sales in a specific market over a given period.