RST has net assets of £450,000 and owns 30% of TUV. In the year TUV had reported profits of £40,000 together with shareholder funds of £120,000. When reporting its group results, RST's net assets will increase by A) £12,000 B) £24,000 C) £36,000 D) £48,000 Plant costing £60,000 at VWX is halfway through a 12-year life when it sustains damage. Experts concur that remaining life will be 3 years with value-in-use of £24,000. Following impairment loss, annual depreciation charges will be A) £4,000 B) £6,000 C) £8,000 D) £10,000 Operating profit at GHI was £65,000 this year. Net assets were £324,000 & the company company is ungeared. If current liabilities are £68,000, the Return on Capital Employed will be A) 15% B) 20% C) 23% D) 25% JKL was acquired for cash by MNO when net assets were £120,000. Plant was revalued by £40,000 at the time of acquisition. JKL paid £148,000 to purchase 80% of MNO. The non-controlling (minority) interests were A) £32,000 B) £24,000 시티이미 C) £20,000 £18,000 D) After renovation, STU revalued a warehouse by £120,000. The building's life of 50 years was extended by 12 years following these improvements. Originally costing £500,000 & halfway through its useful life before refurbishment, annual depreciation charges will be A) ABCD £16,750 B) £12,400 £10,000 C) £ 8,000

RST has net assets of £450,000 and owns 30% of TUV. In the year TUV had reported profits of £40,000 together with shareholder funds of £120,000. When reporting its group results, RST's net assets will increase by A) £12,000 B) £24,000 C) £36,000 D) £48,000 Plant costing £60,000 at VWX is halfway through a 12-year life when it sustains damage. Experts concur that remaining life will be 3 years with value-in-use of £24,000. Following impairment loss, annual depreciation charges will be A) £4,000 B) £6,000 C) £8,000 D) £10,000 Operating profit at GHI was £65,000 this year. Net assets were £324,000 & the company company is ungeared. If current liabilities are £68,000, the Return on Capital Employed will be A) 15% B) 20% C) 23% D) 25% JKL was acquired for cash by MNO when net assets were £120,000. Plant was revalued by £40,000 at the time of acquisition. JKL paid £148,000 to purchase 80% of MNO. The non-controlling (minority) interests were A) £32,000 B) £24,000 시티이미 C) £20,000 £18,000 D) After renovation, STU revalued a warehouse by £120,000. The building's life of 50 years was extended by 12 years following these improvements. Originally costing £500,000 & halfway through its useful life before refurbishment, annual depreciation charges will be A) ABCD £16,750 B) £12,400 £10,000 C) £ 8,000

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter13: Capital Structure Concepts

Section: Chapter Questions

Problem 8P

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