Assets of Argus Ltd Include a Plot of Land Purchased $\quad$

question 20

Multiple Choice

Assets of Argus Ltd include a plot of land purchased for $40 000.On 1 January 20X0 Argus became a subsidiary of Cyclops Ltd.The land was sold on 30 March 20X9 for $350 000.The land's fair value at the following dates was:
1 January 20X0 $\quad$$\quad$$\quad$ $100 000
31 December 20X3 $\quad$$\quad$ $270 000
31 December 20X6 $\quad$$\quad$ $240 000
31 December 20X8 $\quad$$\quad$ $360 000
The group applies the cost model.The carrying amount of the land immediately before control date is $40 000.
What is the profit on sale of land attributable to the group in 20X9?

• A)$60 000
• B)$310 000
• C)$250 000
• D)None of the above

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Definitions:

Gestation

The process of carrying or being carried in the womb between conception and birth.

Coefficient

In algebraic expressions, a variable is multiplied by a numerical or constant figure placed before it, acting as a multiplier.

Constant

A value that does not change and remains the same in mathematical equations, experiments, and various scientific contexts.

Regression

A statistical technique employed to identify the intensity and nature of the connection between a single dependent variable and one or more independent variables.