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The following diagram represents the ownership of issued share capital of the companies in a group....

The following diagram represents the ownership of issued share capital of the companies in a group. What is the ownership interest of A Ltd in D Ltd? The ownership interest of A Ltd in D Ltd is: A) 76.6% B) 86% C) 83.4% D) 100%

7) An investor company holds 45% of shares, valued at $80 000, in its associate company. It has also given a loan of $70 000 to its associate company on 1 January 2013. The associate company has incurred losses of $100 000 for the financial year end 31 December 2013. What is the value of the investment in the associate company reported in the financial statements of the investor company for the year end 2013? A) $105 000 B) ($45 000) C) ($50 000) D) $35 000

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Answer #1

Value of Shares Add Value of Loan Less Loss (1000004596) Value of the Investment in the associate aKKK) 70000 -45000 105000 1

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