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Ddipintee14y ago
C acquired 30000ordinary shares and $10000 of 4% loan stock in Excel company.
Excel co. is financed as follows:
$1 ordinary shares $50000
4% loan stock $40000
Retained earnings $10000

For purpose of preparation of consolidated financial statement, what is C's interest in Excel co.?
Is it:
85% or
30% or
50% or
60%.
Nnokia14y ago#1
C has acquired 60% interst in Excel Co..! (30000 / 50000 x 100)
MikeLittleMikeLittleTutor14y ago#2
60% as per nokia's post. The value of C's investment is the cost - and that's information which you have not given
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