In Preparing the Consolidated Financial Statements in the Year Ended

question 30

Multiple Choice

In preparing the consolidated financial statements in the year ended 30 June 20X6,the consolidation adjustment to eliminate the investment in the subsidiary would be:

• A)\(\begin{array}{ll}\text { Issued Capital }&\$200,000\\
• \text { Retained Earnings } & 340,000 \\
• \text { Goodwill } &400,000 \\
• \quad \text { Investment in Subsidiary } &\$940,000
• \end{array}\)
• B)\(\begin{array}{ll}
• \text { Issued Capital } & \$ 200,000 \\
• \text { Retained Earnings } & 400,000 \\
• \text { Dividend Payable } &\$60,000\\
• \text { Goodwill }&400,000\\
• \text { Investment in Subsidiary }&\$940,000
• \end{array}\)
• C)\(\begin{array}{ll}\text { Issued Capital }&\$200,000\\
• \text { Retained Earnings } & 400,000 \\
• \text { Goodwill } &340,000 \\
• \quad \text { Investment in Subsidiary } &\$940,000
• \end{array}\)
• D)none of the above

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Definitions:

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