On November 1 20X6,a Parent Entity Midstream Ltd Acquired 25

question 16

Multiple Choice

On November 1 20X6,a parent entity Midstream Ltd acquired 25% of the share capital of Delta Ltd and the power to significantly influence the operating and financial policies of that company for $5,000,000 cash.In the period from the date of acquisition to June 30 20X7,Delta Ltd earned a profit for the period of $400,000 (after tax of $200,000) and declared a dividend of $200,000.At June 30 20X7,Midstream Ltd recognised its equity in the dividend.For the year ended June 30 20X7,in the separate income statement of Midstream Ltd and in the consolidated income statement of the group controlled by Midstream Ltd,the equity in the profit before tax of Delta Ltd would be reported as:

• A) $200,000 and $100,000 respectively
• B) $50,000 and $150,000 respectively
• C) $50,000 and $120,000 respectively
• D) None of the above.

---

Definitions:

Distribution

The manner in which a set of data or items is spread or dispersed across a range of values or areas.

Brain Development

The process involving growth and maturation of the brain from prenatal life through infancy, childhood, and adolescence into adulthood.

Developmental Psychopathology

The study of the development of psychological disorders, with an emphasis on the interplay of biological, psychological, and social factors.

ADHD

Attention Deficit Hyperactivity Disorder is a neurodevelopmental condition marked by tendencies towards inattention, hyperactivity, and impulsive behavior.