Window Ltd Acquired a 70 Per Cent Interest in Door

question 1

Multiple Choice

Window Ltd acquired a 70 per cent interest in Door Ltd on 1 July 2013 for a cash consideration of $1 399 000.At that date fair value of the net assets of Door Ltd were represented by: $$\begin{array} { | l | r | } \hline \text { Share capital } & 980000 \\\hline \text { Asset revaluation reserve } & 250000 \\\hline \text { Retained earnings } & \underline{740000} \\\hline & \underline{1970000} \\\hline\end{array}$$ On 1 July 2014 Window Ltd purchased a further 30 per cent of the issued capital of Door Ltd for cash consideration of $665 000.At this date the fair value of the net assets of Door Ltd were represented by:
$$\begin{array} { | l | r | } \hline \text { Share capital } & 980000 \\\hline \text { Asset revaluation reserve } & 400000 \\\hline \text { Retained earnings } & \underline { 820000 } \\\hline & \underline { 2200000 } \\\hline\end{array}$$ Impairment of goodwill was assessed at $4000,relating evenly across each of the last two years.During the period ended 30 June 2015,Door Ltd proposed a dividend of $120 000.The dividend has not been paid at the end of the period,but Window Ltd has a policy of accruing the dividends of subsidiaries when they are proposed.There were no other intragroup transactions.What are the consolidation entries to eliminate the investment in the subsidiary,account for goodwill and eliminate the dividends for the period ended 30 June 2015?

• A)
• \(\text { Elimination and impairment entries: }\\
• \begin{array} { | c | l | r | r | }
• \hline \mathrm { Dr } & \text { Share capital } & 980000 & \\
• \hline \mathrm { Dr } & \text { Asset revaluation reserve } & 295000 & \\
• \hline \mathrm { Dr } & \text { Retained earnings } & 764000 & \\
• \hline \mathrm { Dr } & \text { Goodwill } & 15000 & \\
• \hline \mathrm { Cr } & \text { Investment in Door Ltd } & & 2054000 \\
• \hline & & & \\
• \hline \mathrm { Dr } & \text { Goodwill impairment expense } & 4000 & \\
• \hline \mathrm { Cr } & \text { Accumulated impairment losses-goodwill } & & 4000 \\
• \hline & & & \\
• \hline \mathrm { Dr } & \text { Dividend payable } & 120000 & \\
• \hline \mathrm { Cr } & \text { Dividend receivable } & & 120000 \\
• \hline
• \end{array}\)
• B)
• \(\text { Elimination and impairment entries: } \\
• \begin{array}{|l|l|r|r|}
• \hline \mathrm{Dr} & \text { Share capital } & 686000 & \\
• \hline \mathrm{Dr} & \text { Asset revaluation reserve } & 175000 & \\
• \hline \mathrm{Dr} & \text { Retained earnings } & 518000 & \\
• \hline \mathrm{Dr} & \text { Goodwill } & 20000 & \\
• \hline \mathrm{Cr} & \text { Investment in Door Ltd } & & 1399000 \\
• \hline\\
• \hline \mathrm{Dr} & \text { Share capital } & 294000 & \\
• \hline \mathrm{Dr} & \text { Asset revaluation reserve } & 120000 & \\
• \hline \mathrm{Dr} & \text { Retained earnings } & 246000 & \\
• \hline \mathrm{Cr} & \text { Investment in Door Ltd } & & 660000 \\
• \hline & & & \\
• \hline \mathrm{Dr} & \text { Non-monetary assets } & 5000 & \\
• \hline \mathrm{Cr} & \text { Investment in Door Ltd } & &5000 \\
• \hline & & & \\
• \hline \mathrm{Dr} & \text { Retained earnings beginning } & 2000& \\
• \hline \mathrm{Dr} & \text { Goodwill impairment expense } & 2000& \\
• \hline \mathrm{Cr} & \text { Accumulated impairment losses-goodwill } & &4000 \\
• \hline & & & \\
• \hline \mathrm{Dr} & \text { Dividend proposed } & 120000& \\
• \hline \mathrm{Cr} & \text { Dividend payable } & &120000\\
• \hline & & & \\
• \hline \mathrm{Dr} & \text { Dividend income } & 120000& \\
• \hline \mathrm{Cr} & \text { Dividend receivable } & & 120000\\
• \hline
• \end{array}\)
• C)
• \(\text { Elimination and impairment entries: }\\
• \begin{array}{|r|l|r|r|}
• \hline \mathrm{Dr} & \text { Share capital } & 686000 & \\
• \hline \mathrm{Dr} & \text { Asset revaluation reserve } & 175000 & \\
• \hline \mathrm{Dr} & \text { Retained earnings } & 518000 & \\
• \hline \mathrm{Dr} & \text { Goodwill } & 20000 & \\
• \hline \mathrm{Cr} & \text { Investment in Door Ltd } & & 1399000 \\
• \hline\\
• \hline \mathrm{Dr} & \text { Share capital } & 294000 & \\
• \hline \mathrm{Dr} & \text { Asset revaluation reserve } &120000 & \\
• \hline \mathrm{Dr} & \text { Retained earnings } & 246000 & \\
• \hline \mathrm{Dr} & \text { Accumulated impairment losses-goodwill } &5000 & \\
• \hline \mathrm{Cr} & \text { Investment in Door Ltd } & & 665000 \\
• \hline & & & \\
• \hline \mathrm{Dr} & \text { Retained earnings beginning } & 2000 & \\
• \hline \mathrm{Dr} & \text { Goodwill impairment expense } & 2000 & \\
• \hline \mathrm{Cr} & \text { Accumulated impairment losses-goodwill } & &4000 \\
• \hline & & & \\
• \hline \mathrm{Dr} & \text { Dividend payable } & 12000 0& \\
• \hline \mathrm{Cr} & \text { Dividend proposed } & &120000 \\
• \hline & & & \\
• \hline \mathrm{Dr} & \text { Dividend income } & 120000 & \\
• \hline \mathrm{Cr} & \text { Dividend receivable } & &120000 \\
• \hline
• \end{array}\)
• D)
• \(\text { Elimination and impairment entries: }\\
• \begin{array} { | c | l | r | r | }
• \hline \mathrm { Dr } & \text { Share capital } & 294000 & \\
• \hline \mathrm { Dr } & \text { Asset revaluation reserve } & 120000 & \\
• \hline \mathrm { Dr } & \text { Retained earnings } & 246000 & \\
• \hline \mathrm { Dr } & \text { Goodwill } & 5000 & \\
• \hline \mathrm { Cr } & \text { Investment in Door Ltd } & & 665000 \\
• \hline & & & \\
• \hline \mathrm { Dr } & \text { Goodwill impairment expense } & 4000 & \\
• \hline \mathrm { Cr } & \text { Accumulated impairment losses-goodwill } & & 4000 \\
• \hline & & & \\
• \hline \mathrm { Dr } & \text { Dividend income } & 84000 & \\
• \hline \mathrm { Cr } & \text { Dividend receivable } & & 84000 \\
• \hline
• \end{array}\)

Identify the characteristics and typologies of followers as proposed by different scholars.

Analyze the role and impact of followers in enhancing or hindering leadership effectiveness.

Explore the dynamics between leaders and followers and how they contribute to achieving common goals.

Comprehend the ethical and moral dimensions involved in followership and leadership.

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Definitions:

Hubel And Wiesel

Hubel and Wiesel were neurophysiologists known for their pioneering research on the visual cortex, revealing how sensory processing and visual perception mechanisms function in the brain.

Ganglion Cell

A type of neuron located in the retina that receives visual information from photoreceptors and transmits it to the brain.

Bipolar Cell

A type of neuron found in the retina, serving as an intermediate layer that transmits signals from photoreceptors to ganglion cells.

Cone

A type of photoreceptor cell in the retina that is responsible for color vision and works best in relatively bright light.