Illustration of pre-aquisition, Financial Accounting

Assignment Help:

Illustration of Pre-Aquisition

H Ltd.. Acquired 80% of S Ltd. during the year ended 31/12/04.  S Ltd. paid an interim dividend of  40,000 on 30th September and as at 31/12/04 has proposed a dividend of 60,000.

Required:
Compute the pre-acquisition dividend to cost of control assuming that H Ltd. acquired S Ltd. on the following dates;

i) 1st July, 2004,  ii)  1st October, 2004 – H did not receive share of interim dividend.

 

 

1/7/2004

1/10/2004

 

 

£

£

Total dividends

: Paid

40,000

40,000

 

  Proposed

60,000

60,000

 

 

100,000

100,000

 

 

 

 

Post acquisition dividends

(6/12 x 100,000)

50,000

25,000

Pre-acquisition dividend to cost of control

 

 

 

Holding company share of dividend: 

 

Interim receive (80/100 x 40,000)

 

32,000

 

 

Interim proposed (80/100x 60,000)

48,000

48,000

 

 

80,000

48,000

Less: Holding company share of post acquisition of dividends

 

 

(80/100 x 50,000)

 

 

40,000

 

 

(20,000)

 

 

40,000

28,000

 


Related Discussions:- Illustration of pre-aquisition

Regulated investment company, Regulated Investment Company (RIC) - Commonly...

Regulated Investment Company (RIC) - Commonly known as a MUTUAL FUND, this is a domestic corporation which acts as an investment agent for its shareholders by typically investing i

Explain the mechanism, Explain the mechanism that states use to prevent the...

Explain the mechanism that states use to prevent the double taxation of the income of a corporation doing business in two or more states.

calculate a weighted average contribution margin per unit, Part A   ...

Part A   The contribution margin income statement of Nice Cup Company for 31 December 2011 follows: Nice Cup Company   Contribution Mar

Journal entries for dissolutions, Journal Entries for Dissolutions The ...

Journal Entries for Dissolutions The following journal entries are relevant for the purpose of recording all dissolutions: 1)    DR.    Revaluation account CR.  Asset account

Illustration of consolidated cashflow statements, Illustration of consolida...

Illustration of consolidated cashflow statements The voice of the Nation Limited is a Nairobi based media company. Its Consolidated Income Statement for the year ended 30 April

Financial reporting, Describe Following questions:- Q.1 What organizatio...

Describe Following questions:- Q.1 What organizations are responsible for governing financial reporting? What is the role of each organization? How have the roles changed in the

What is the journal entry to record the first interest, On January 1, 2010,...

On January 1, 2010, Jacob issues $800,000 of 9%, 13-year bonds at a price of 96½. Six years later, on January 1, 2016, Jacob retires 20% of these bonds by buying them on the open m

Consolidation, what is consolidation and its features?

what is consolidation and its features?

#Profitandloss, How other income is different from revenue from normal oper...

How other income is different from revenue from normal operations under the vertical format

Great adventures problem 5-1, Tony and Suzie are ready to expand Great Adve...

Tony and Suzie are ready to expand Great Adventures even further in 2019. Tony believes that many groups in the community (for example, Boy Scouts, church groups, civic groups, and

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd