Wu Inc Purchased 100% of the Ordinary Shares of Lee Inc

question 8

Multiple Choice

Wu Inc. Purchased 100% of the ordinary shares of Lee Inc. on December 31, 2014. The cost of the investment exceeded the book value of the subsidiary's net assets by HK$200,000. The fair value of Lee's plant assets at December 31, 2014 is HK$10,255,000. Selected account balances from the separate statements of financial position of Wu and Royal on December on December 31, 2014 are as follows: The amount of plant assets, net reported on the consolidation statement of financial position at December 31, 2014 is

• A) HK$21,690,000.
• B) HK$21,490,000.
• C) HK$11,635,000.
• D) HK$11,435,000.

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Definitions:

Diplomatic Revolution

Refers to the significant shift in alliances among major European powers in the mid-18th century, particularly between 1756 and 1757, leading to the realignment of diplomatic relations.

1756

The year 1756 is notably remembered for the start of the Seven Years' War, a global conflict that involved most of the great powers at the time.

Mercantilism

An economic theory and practice, dominant in Europe from the 16th to the 18th century, that promotes governmental regulation of a nation's economy for the purpose of augmenting state power.

Economic Theory

A set of principles and models that explains how economies operate, including the distribution of resources, the allocation of goods and services, and the consumption behavior of individuals and organizations.