On 1 January 20X0, Zed Ltd Acquired 90 % of the Share

question 16

Multiple Choice

On 1 January 20X0, Zed Ltd acquired 90 % of the share capital of Ned Ltd for $900 000 cash.At that date, the equity section of Ned Ltd's balance sheet was as follows:
$$\begin{array} { | c | r | } \hline & { \$ } \\\hline \text { Share capital } & 700000 \\\hline \text { Retained profits } & 50000 \\\hline \text { Asset revaluation reserve } & 100000 \\\hline\end{array}$$
Assume all assets and liabilities were recorded at their fair values, except for a piece of equipment recorded at $50 000 but Zed Ltd considers it to have a fair value of $100 000.This equipment is not revalued by Ned Ltd.The fair value of NCI under the full method was estimated as being $100 000.What was the difference on acquisition?

• A)Nil
• B)$100 000 goodwill
• C)$90 000 goodwill
• D)$50 000 goodwill

Be aware of the legal remedies available to parties when a contract is breached by one of the parties or when a third party beneficiary's rights are violated.

Understand the impact of statutory restrictions on the assignment of certain benefits like workers' compensation.

Grasp the rule of priority in assignments and its practical implications.

Recognize the role of consent in contract assignments and delegations and its impact on the parties' rights.

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Definitions:

Popliteus

A small muscle located at the back of the knee joint, crucial for initiating knee flexion.

Tibialis Posterior

A muscle in the leg that supports the arch of the foot and aids in walking by controlling plantar flexion and inversion of the foot.

Fibularis Brevis

A muscle of the lower leg that contributes to the eversion and plantarflexion of the foot.

Extensor Hallucis Longus

A leg muscle that extends the big toe and aids in foot dorsiflexion and inversion.