Which of the Following Is Not Recognised as Valuable Consideration

question 1

Multiple Choice

Which of the following is not recognised as valuable consideration in equity for the creation of a trust?

• A) Settlement made by the settlor in contemplation of his daughter's marriage.
• B) Payment of £10,000 to the settlor.
• C) The fact that an agreement was made in a deed.
• D) Transfer of a valuable painting to the settlor.

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Definitions:

Unrealised Profit

Profits that have been earned but not yet realized through a transaction, such as an increase in the value of an investment that has not been sold.

Partial Goodwill Method

A method of accounting for a business combination where goodwill is only recorded in relation to the parent's share of ownership in the subsidiary.

NCI

Non-controlling interest (NCI) refers to the portion of equity interest in a subsidiary not owned directly or indirectly by the parent company.

Fair Value

The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants.