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Question 1: On the 1 July 2013, Alma Ltd purchased 30% of the shares of ManUnited Ltd for $ 50000, at this date the equity of ManUnited Ltd consisted of 200000 share capital and 10000 retained earnings. If the tax rate was 30% and there is no intracompany transaction. And if the profit on 30/6/2014 was 60000. Alma will record the following entry:
Select one:
a. DR. Investment in ManUnited 60000 CR. Share of profit of ManUnited 60000b. DR. Investment in ManUnited 31000 CR. Share of profit of ManUnited 31000c. DR. Investment in ManUnited 18000 CR. Share of profit of ManUnited 18000d. DR. Investment in ManUnited 21900 CR. Share of profit of ManUnited 21900
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