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Financial accounting question No. 4 and No.5 Use the following...

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Accounting

Financial accounting question No. 4 and No.5 image
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Use the following information for questions 4-5. On 1 January 20X1 entity A acquired 30 per cent of the ordinary shares that carry voting rights at a general meeting of shareholders of entity B for RM300,000.Entity B incurred a loss of RM100,000 for the year ended 31 December 20X1 and it did not declare a dividend. However, at 31 December 20x1 the recoverable amount of entity A's investment in entity B is RM265,000 (calculation: RM275,000 fair value less RM10.000 estimated costs to sell). O Option 1 is 4. How much profit or loss, and impairment if any that Entity A must recognize from its associate: * O (a) Profit RM30,000.00, RM4,000.00 O (b) Loss RM30,000.00, RM5,000.00 O (c) Profit RM30,000.00, no impairment (d) LOSS RM30,000.00, no impairment (b) Loss RM30,000.00, RM5,000.00 O (c) Profit RM30,000.00, no impairment (d) Loss RM30,000.00, no impairment 5. At 31 December 20X1 entity A reports its investment in entity B (an associate) at: O (a) RM270,000.00 O (b) RM300,000.00 O (C) RM265,000.00 0 (d) RM260,000.00

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