CIMA Exam CIMAPRA19-F02-1 Topic 5 Question 100 Discussion

Actual exam question for CIMA's CIMAPRA19-F02-1 exam

Question #: 100
Topic #: 5

On 1 January 20X1KL acquired 75% of the equityshares of PQ. Goodwill arising on the acquisition was $480,000. On 31 December 20X3 KLsold the full investment of PQ to XY Groupfor $2,000,000. On this date the net assetsof PQ were $1,340,000 and the non-controlling interests stood at $410,000.

What is the gain on disposal to be recognised in the consolidated statement of profit or loss of KL?

A$590,000

B$180,000

C$660,000

D$635,000

Show Suggested Answer

Suggested Answer: A

by Gail at Sep 19, 2024, 04:57 PM

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Fletcher

8 days ago

Okay, time to put on my accounting superhero cape and solve this puzzle! Let's do this, one step at a time.

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Darell

14 days ago

Oh man, this is a real brain-teaser. I sure hope I don't mess up the math and end up with the wrong answer. That would be a total 'KL' on my part.

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1 months ago

I think the gain on disposal should be $590,000.

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