alleryStart learning →A's 30% in B: book Rs 40 lakh, now Rs 55 lakh. A gains control. Gain on old stake?
ANo gain arises
BGain of Rs 55 lakh
CGain of Rs 25 lakh
DGain of Rs 15 lakh
Answer & Solution
Correct answer: D. Gain of Rs 15 lakh
Fair value 55 less carrying amount 40 is a Rs 15 lakh gain, recognised in profit or loss or OCI as appropriate.
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