ACCA · Question 46 · Preparing simple consolidated financial statements
Scenario: TechNova PLC acquired 80% of CyberNetix Ltd on 1 Jan 20X5 for $500,000 cash. At acquisition, CyberNetix's retained earnings were $200,000 and share capital was $100,000. NCI fair value at acquisition was $120,000. During 20X5, TechNova sold goods to CyberNetix for $80,000 (25% mark-up on cost). Half remained in inventory at year-end (31 Dec 20X5). CyberNetix's 20X5 profit was $150,000.
If TechNova's own individual retained earnings at year-end are $800,000, what is the Consolidated Retained Earnings figure?
Answer options:
$920,000
$912,000
$950,000
$800,000
65 questions · hints · full answers · grading
Expert