Nina acquired a 75% controlling interest in Pinta in two stages. 1) In 2012, Nina acquired 15% equity interest for cash consideration of $10,000. Nina classified the interest as available for- sale under IAS 39. From 2012 to the end of 2014, Nina reported fair value increases of $2,000 in other comprehensive income (OCI) 2) On January 2014, Nina acquired a further 60% equity for a cash consideration of $60,000. Nina identified net assets of Pinta with a fair value of $80,000. Nina elected to measure non-controlling interest at their share of net assets. On the date of the acquisition, the previously-held 15% interest had a fair value of $12,500. Calculate the cost of investment that will be used in computing goodwill Select one: $60,000 $10,000 $80,000 $70,000
08) Nina acquired a 75% controlling interest in Pinta in two stages.
1) In 2012, Nina acquired 15% equity interest for cash consideration of $10,000. Nina classified the interest as available for- sale under IAS 39. From 2012 to the end of 2014, Nina reported fair value increases of $2,000 in other comprehensive income (OCI)
2) On January 2014, Nina acquired a further 60% equity for a cash consideration of $60,000. Nina identified net assets of Pinta with a fair value of $80,000. Nina elected to measure non-controlling interest at their share of net assets. On the date of the acquisition, the previously-held 15% interest had a fair value of $12,500.
Calculate the cost of investment that will be used in computing
Select one:
- $60,000
- $10,000
- $80,000
- $70,000
09) Refer to question 8 above. Calculate the gain arising that will be recognize in the income statement.
Select one:
a. $2,500
b. $2,000
c. $500
d. None of the above
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