User Account

All Pages

Find which of the carrying amounts for the investment

Assignment Help Financial Accounting
Reference no: EM132928169

Ford Limited acquired a 15% share in Telsa Limited for $89 000. Ford Limited has no other investments. At the date on which it became an associate, Telsa had the following equity:

share capital $200 000

retained earnings $40 000.

Problem 1: At the end of the financial year following the investment, Tesla Limited generated a profit after tax of $40 000. After applying the equity method of accounting, Ford will have which of the following carrying amounts for the investment?

Reference no: EM132928169

Questions Cloud

What goodwill to be recognised on consolidation of high ltd : The total goodwill arising on High's acquisition of Low was $10 000. The goodwill to be recognised on consolidation as a result of High's acquisition of Low is?
Define compensation management : Define Compensation management. What are three areas that are involved and important in compensation management?
What is amount of business combination valuation reserve : When Jackson Ltd acquired 100% of the share capital. What is the amount of the business combination valuation reserve that will be recognised on consolidation?
What are social and emotional competence : What are social and emotional competence? How do they come into play?
Find which of the carrying amounts for the investment : Find which of the carrying amounts for the investment? Ford Limited acquired a 15% share in Telsa Limited for $89 000. Ford Limited has no other investments.
What the difference between relevant costing and abc costing : What the difference between relevant costing and ABC costing? What the difference between traditional absorption costing and ABC costing
Which deferred tax item that is recognised on consolidation : 50% of the inventories to an external party. The company tax rate is 30%. Which of the following is the deferred tax item that is recognised on consolidation?
How much is this investment worth at the end of year four : You are able reinvest these cash flows at 3.35 percent, compounded annually. How much is this investment worth at the end of year four
Which of the carrying amounts for the investment : Which of the carrying amounts for the investment? At the end of the financial year following the investment, Tesla Limited generated a profit after tax.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd