The Following Acquisition Analysis Relates to a Non-Sequential Acquisition,at the Time

question 38

Multiple Choice

The following acquisition analysis relates to a non-sequential acquisition,at the time that Ginger Ltd acquires a controlling interest (acquiring 60 per cent) in Posh Ltd.Posh Ltd had previously acquitted 75 per cent of Scary Ltd. $\begin{array}{|l|r|r|}\hline & \text { Posh Ltd } & \begin{array}{r}\text { Ginger Ltd } \\\text { interest }\end{array} \\\hline \text { Share capital at acquisition date } & 280000 & \text { (a) } \\\text { Retained earnings at acquisition date } & 124000 & \text { (b) } \\\text { Share of post-acquisition earnings of Scary Ltd attributable to Posh } & 90000 & \text { (c) } \\\text { Ltd prior to Ginger's acquisition of Posh Ltd } & & \\\text { Increase in retained earnings of Scary Ltd } & & \\\text { ((d) }-56000) & & \\\hline\end{array}$
What are the figures represented by (c) and (d) in the table above?

• A)(a) €176 000; (b) €54 000
• B)(a) €150 000; (b) €67 500
• C)(a) €146 000; (b) €54 000
• D)(a) €146 000; (b) €67 500

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Definitions:

Valence

The perceived desirability or attractiveness of a reward or outcome, which influences motivation.

Negative Transfer

This occurs when learning in one context or task hinders or interferes with performance in another context or task.

Vertical Transfer

The process of applying knowledge or skills acquired in one context to different or higher-level tasks and situations.

Performance Deterioration

A decline or reduction in the efficiency, quality, or effectiveness of an individual's or group's work performance over time.