Calculate the cost of control or capital reserve, Financial Accounting

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Calculate the cost of control or capital reserve

Problem

On 30 June 2017, two-third of the shares of SAR Ltd. (with a total capital of CU 4,800,000) was acquired by HOR Ltd. the Balance Sheet of SIK Ltd. showed a debit balance of CU 2,400,000 on 1st January 2017 and a credit balance of CU 1,440,000 on 31 December 2017. The investment by HOR Ltd. in shares of SIK Ltd. Is CU 3,600,000. Calculate the cost of control or capital reserve.

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Financial Accounting: Calculate the cost of control or capital reserve

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Financial Accounting: Calculate the cost of control or capital reserve

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