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Questions -
Q1. On January 01, 2021, ABC acquired 10% of the shares of AST for 100,000 cash. Later on, ABC purchased another 50% for 600,000 cash. On that subsequent date, AST reported its net assets at 1,300,000. How much is the gain on reclassification?
Q2. On January 01, 2021 ABC sold 20% of its wholly owned subsidiary, AST for 100,000. The remaining interest has a fair value of 350,000. AST reports its net assets at 400,000 before the sale . How much is the gain on disposal?
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