Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. ford limited acquired a 15% share in telsa limited

Ford Limited acquired a 15% share in Telsa Limited for $89 000. Ford Limited has...

70.2K

Verified Solution

Question

Accounting

Ford Limited acquired a 15% share in Telsa Limited for $89 000. Ford Limited has no other investments. At the date on which it became an associate, Telsa had the following equity: share capital $200 000 retained earnings $40 000. At the end of the financial year following the investment, Tesla Limited generated a profit after tax of $40 000. After applying the equity method of accounting, Ford will have which of the following carrying amounts for the investment?

Select one:

$6 000

$91 200

$95 000

$89 000

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Name the primary tissue type (epithelial, connective, muscle, or nervous) that is described.1. Cells contain...

Biology
Q

5 gm of ice at 0 C is mixed with 1gm 100 C The final...

Physics
Q

Using the accompanying Cell Phone Survey data apply ANOVA to determine if the mean response...

Statistics
Q

Use the Laws of Logarithms to expand the expression log V 7x y HODINY FR

Calculus
Q

4 1 2 A = 0-3 3 ...

Algebra
Q

1 What is the y intercept of the line 2 What is the slope of...

Algebra
Q

You have been asked to prepare a December cash budget for Ashton Company, a distributor...

Accounting
Q

[Para. 6-d-10] Investment earnings received in cash during the year amounted to $3,900. Required: Prepare...

Accounting
Q

...
Accounting
Q

Briefly describe an organization with which you are familiar. Describe a situation when a manager...

Accounting
Q

Prepare journal entries for the following credit card sales transactions (the company uses the perpetual...

Accounting
Q

8) Roger receives $2.300 in APTC payments for the year. He is single with no...

Accounting