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

Limited Time Offer

25%

Off

Get Premium CIMAPRA19-F02-1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Yolande

9 days ago

I'm not sure, but I think the gain on disposal is $635,000.

upvoted 0 times

...

Amie

11 days ago

I disagree, I believe the gain on disposal is $660,000.

upvoted 0 times

...

Quentin

12 days ago

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

upvoted 0 times

...