The Following Information Relates to Questions
on 1 July

question 26

Multiple Choice

The following information relates to questions
On 1 July 2013 Joey Ltd acquired 25% of the shares of Leo Ltd for £100 000. At that date the equity of Leo Ltd was £400 000, with all identifiable assets and liabilities being measured at fair value. Profits/(losses) made since the date of acquisition are as follows:
$$\begin{array} { | c | c | } \hline \begin{array} { c } \text { Year ended } \\\text { 30 June }\end{array} & \begin{array} { c } \text { Prafit(Lass) } \\\mathbf { £ }\end{array} \\\hline 20 \times 5 & 20,000 \\\hline 20 \times 6 & ( 200,000 ) \\\hline 20 \times 7 & ( 250,000 ) \\\hline 20 \times 1 & 16,000 \\\hline 20 \times 9 & 20,000 \\\hline\end{array}$$
There have been no dividends paid or movements in reserves since the date of acquisition.
-At 30 June 20X5 the equity accounted balance of the investment in Leo was:

• A) £50 000
• B) £55 000
• C) £100 000
• D) £105 000

---

Definitions:

Parent-Child Relationships

The dynamic interaction between a parent and child, including the provision of care, emotional warmth, nurturing, and guidance.

Middle Childhood

A developmental stage that typically covers the period from ages 6 to 12, characterized by significant growth in cognitive, social, and physical abilities.

Peer Relationships

Social connections between individuals of similar age or developmental level, which are critical for emotional and social development.

Middle Childhood

A stage in human development that typically ranges from about age six to puberty, characterized by the development of social, cognitive, and physical skills.