Wholly-Owned Subsidiary Has the Following Balances at Control Date 20X1

question 2

True/False

Wholly-owned Subsidiary has the following balances at control date 20X1:
$$\begin{array} { l l } \text { Capital } & \$ 500000 \\\text { Asset revaluation reserve } & \$ 200000 \\\text { Retained profits } & \$ 100000\end{array}$$
During 20X2 Subsidiary generates $100 000 profits and revalues plant downwards by $375 000.The asset revaluation reserve all relates to previous revaluation of plant.
During 20X3 Subsidiary incurs $50 000 of losses.
The substitution elimination in 20X3 for retained profits would be Cr.$25 000.

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Definitions:

Ethanol Subsidies

Financial incentives provided by governments to support the production, use, and development of ethanol as a form of renewable energy.

Demand For

Refers to the desire and ability of consumers to purchase goods or services at a given price.

Supply Of

The total amount of a specific good or service that is available to consumers, which can be influenced by factors such as price, production costs, and technology.

Potentially Efficient

A situation or condition that has the capability to achieve optimum productivity with minimal waste and expense.