Wholly Owned Subsidiary Has the Following Balances at Control Date

question 5

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 asset revaluation reserve would be Cr.$200 000.

---

Definitions:

2018 Ford Pick-Up

A model of truck produced by Ford Motor Company, known for its durability, utility, and performance, part of the Ford F-Series lineup.

Course of Dealing

The history of past business transactions between parties that establishes a common basis for their understanding and expectations.

Citrus Orchard

An area of land dedicated to the cultivation of citrus trees, such as oranges, lemons, limes, and grapefruits, for fruit production.

Distribution Center

A warehouse or storage facility where goods are stored before they are distributed to retailers or customers.