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vaynor co acquired 100,000 ordinary sharres in weeton co and 40000 shares in yarlet co some years ago.Extracts from the statments of financial position of the three companies as at 30 september 2001 we:
vaynor co weeton co yarlet co
ordinary shares 500 100 50
retained earning 90 40 70
at acquisition the reserves of weeton showed a deficit of 10,000 and of yarlet a balance of 30,000what are the consolidated retained earning of vanor group at 30 sept 2001.
ans. vaynor=90,000
weeton=40000+10000=50000
yarlet=(70000-30000)x80%=32,000
total=172,000
my question is how to u find 80%? (how much they own)If Weeton has 50,000 shares in total (I assume there were ‘000’s above the figures) and if Vaynor acquired 40,000 shares, then Vaynor owns 40,000/50,000 = 80%
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