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    Question

    Parent Ltd. acquires 80% shares of Subsidiary Ltd. for

    ₹8,00,000 when Subsidiary’s net assets = ₹9,00,000. Calculate Minority Interest at acquisition.
    A ₹1,80,000 Correct Answer Incorrect Answer
    B ₹2,00,000 Correct Answer Incorrect Answer
    C ₹1,60,000 Correct Answer Incorrect Answer
    D ₹1,20,000 Correct Answer Incorrect Answer
    E Nil Correct Answer Incorrect Answer

    Solution

    Minority interest = 20% × Net Assets = 1,80,000. 

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