Turtles Ltd Acquired 100% of Dove Ltd on 1 July $\quad$

question 27

Multiple Choice

Turtles Ltd acquired 100% of Dove Ltd on 1 July 2021. At acquisition date, Dove Ltd had the following equity items: Retairyed earTings $\quad$$\quad$$\$ 120,000$
Share capital $\quad$$\quad$$\quad$$\quad$$\$ 200,000$ In the year following the acquisition, Dove Ltd paid a bonus share dividend of $30 000 out of pre-acquisition retained earnings. Which of the following consolidation adjustments is needed in the consolidation worksheet for 30 June 2022?
I. Dr Shares in subsidiary $30 000
Cr Share capital $30 000
II. Dr Bonus dividend paid $30 000
Cr Share capital $30 000
III. Dr Share capital $30 000
Cr Bonus dividend paid $30 000
IV. Dr Retained earnings $30 000
Cr Share capital $30 000

• A) I.
• B) II.
• C) III.
• D) IV.

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Definitions:

Historical Information

Past data or records that provide context or insight into an event, individual, or institution's background.

Market Prices

The current price at which an asset or service can be bought or sold in a market, determined by the supply and demand forces.

Percentage Return

The return on an investment expressed as a percentage of the original investment amount.

Quarterly Dividends

Dividends paid out by a company to its shareholders on a quarterly basis, typically representing a portion of the company's earnings.