9.Tiger acquired 20% share capital of Deer on 1 August 2021 at the cost of£5.5million. Tiger has classified Deer as an associate undertaking. For the yearended 31 October 2021, Deer has reported a net profit of £937,500.What is the value of the associate investment in the group statement offinancial position of Tiger as at 31 October 2021?A. £5,546,875B. £6,125,000C. £5,968,750D. £5,500,00010. Hyperverse plc acquired 80% of the share capital of Lyca plc on 1/10/2018 for£340,600. The profit for the year ended 31/12/2018 for Lyca was £36,000.Profits are deemed to accrue evenly over the year. At 31/12/2018 the followingextracts of the statement of financial position for Lyca has been provided:Equity share capitalRetained earningsWhat is the goodwill on acquisition?A. £150,000B. £184,650C. £159,000D. £177,000£200,000£180,000

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9. Tiger acquired 20% share capital of Deer on 1 August 2021 at the cost of £5.5million. Tiger has classified Deer as an associate undertaking. For the year ended 31 October 2021, Deer has reported a net profit of £937,500. What is the value of the associate investment in the group statement of financial position of Tiger as at 31 October 2021? A. £5,546,875 £6,125,000 £5,968,750 B. C. D. £5,500,000

9. Tiger acquired 20% share capital of Deer on 1 August 2021 at the cost of £5.5million. Tiger has classified Deer as an associate undertaking. For the year ended 31 October 2021, Deer has reported a net profit of £937,500. What is the value of the associate investment in the group statement of financial position of Tiger as at 31 October 2021? A. £5,546,875 £6,125,000 £5,968,750 B. C. D. £5,500,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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