Solution-Compute the adjustment required to the investment

Compute the adjustment required to the investment

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Reference no: EM131711346

Question - On 1 July 2016 Titans Ltd acquired a 25% share of Taylor Ltd. At that date, the following assets had carrying amounts different to their fair values in Taylor's books.

Asset	Carrying amount	Fair value
Inventory	$24,000	$30,000
Machinery	$48,000	$60,000

All inventory was sold to third parties by 30 June 2017. On 1 July 2016, the machinery had a remaining useful life of 3 years.

The tax rate is 30%.

The adjustment required to the investment in associate account at 30 June 2018 in relation to the above assets is:

a. $1000.

b. $2450.

c. $2800.

d. $3500.

Reference no: EM131711346

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Compute the adjustment required to the investment

Reference no: EM131711346

Reference no: EM131711346

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