P Ltd Acquired 80% of S Ltd for a Consideration

question 31

Multiple Choice

P Ltd acquired 80% of S Ltd for a consideration of $500 000.At the date of acquisition,the following information is available: $\begin{array}{l}\text { S Ltd issued capital } &\$350,000\\\text { Retained earnings } &\$ 160,000 \\\text { Fair value of land }& \$ 200,000\\\text { (carrying amount } \$ 100000 \text { ) }\\\text { Fair value of } \mathrm{NCl}&\$150,000\\\text { Tax rate } 30 \%\end{array}$
- Under the fair value (100% of goodwill) method used in Question 14,the NCI in goodwill is:

• A) $34 000.
• B) $104 000.
• C) $150 000.
• D) none of the above.

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Definitions:

Split-phase Motor

An AC electric motor that uses a split-phase induction to create a rotating magnetic field for starting torque.

Stator Core

The stationary part of an electric generator or motor, especially the magnetic core, around which the winding is arranged.

Small Wire

A conductor of electricity characterized by a relatively small cross-sectional area, affecting its resistance and current-carrying capacity.

Single-phase Synchronous Motor

A type of AC motor that operates at a constant speed, synchronized with the frequency of the supply current.