Calculate the net assets of Lactus Ltd at fair value on 1 September 2022, given its share capital, retained earnings, and revaluation surplus.

May 18, 2026Accounting

ScanSolve AI Answer

May 18, 2026

Hey Perfo❤️, good to see you again.

Here are the calculations based on the information provided:

PART A: 60% Acquisition (Subsidiary)

Step 1: Calculate the net assets of Lactus Ltd at fair value on 1 September 2022. The net assets at fair value are the sum of the equity balances and the fair value adjustment for the land.

\begin{align*} Share capital &= R720\,000 \\ Retained earnings &= R2\,185\,000 \\ Revaluation surplus (existing) &= R1\,265\,000 \\

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Hey Perfo❤️, good to see you again. Here are the calculations based on the information provided: PART A: 60% Acquisition (Subsidiary) Step 1: Calculate the net assets of Lactus Ltd at fair value on 1 September 2022.

Asked on May 18, 2026Accounting

This accounting problem is solved step by step below, with detailed explanations to help you understand the method and arrive at the correct answer.

ScanSolve AI AnswerAnswered on May 18, 2026

Hey Perfo❤️, good to see you again. Here are the calculations based on the information provided: PART A: 60% Acquisition (Subsidiary) Step 1: Calculate the net assets of Lactus Ltd at fair value on 1 September 2022. The net assets at fair value are the sum of the equity balances and the fair value adjustment for the land. Share capital &= R720\,000 \\ Retained earnings &= R2\,185\,000 \\ Revaluation surplus (existing) &= R1\,265\,000 \\