On 1 July 2016, A Ltd acquired 80% of the issued shares of B Ltd for $190 000. At this date, the equity of B Ltd was:   Share capital General reserve Retained earnings   $ 100 000 50 000 60 000   At acquisition date . At 30 June 2018, the equity of B Ltd consisted of:   Share capital General reserve Retained earnings   $ 100 000 70 000 90 000

On 1 July 2015, Ausra purchased 75% of Danute by way of a share exchange oftwo new shares in Ausra for every three purchasedin Danute . Ausra's share price at the acquisition date was $4.70.] + Statement of Comprehensive Income for the year ended 31 December 2015 Ausra$ 000 120,000 Danute$ 000 Revernie 48,000 Cost of sales (84,000) (40,000) Gross profit Operating expenses Profit from operations 36,000 8,000 (11,900) (400) 7,600 24,100 Other income 300 Finance costs (1,200) Profit before tax 24,400 6,400 Income tax expense (6,000) 18,400 (1,200) 5,200 Profit for the year The following information is relevant 1JThe fair value of Danute's net assets differed from its carrying values at 1 July 2015. Plant was $8 million m excess of its net book value. Plant had 4 years remaiming at the date of acquisition. The group depreciation policy is to charge depreciation on a proportionate basis and should be included in cost of sales. No adjustment was made for this in Danute s fmancial statements.…

WAG PAPALOKO Inc. has the following balance sheet on January 1, 2018, which is the date of acquisition:   Assets   Liabilities and Equity Accounts Receivable 79,000   Current Liabilities 145,000 Inventory 112,000   Long-term notes 100,000 Other current assets 55,000   Ordinary share, P1 par 50,000 Equipment (net) 294,000   Share premium 200,000 Goodwill 30,000   Retained earnings 75,000 Total assets 570,000   Total liabilities and equity 570,000   On January 1, 2018, WAG PAPATINAG Corp. acquired the net assets of WAG PAPALOKO Inc. by issuing 7,000 shares of its P25 par value common stock. Subsequently, WAG PAPALOKO Inc. was liquidated and its assets and liabilities merged into WAG PAPATINAG Corp. WAG PAPATINAG Corp. and WAG PAPALOKO Inc. stocks were selling for P40 per share and P6 per share, respectively on January 1, 2018.   The book values of WAG PAPALOKO Inc.’s identifiable assets and liabilities equaled their…

6. On 30 June 2017, two-third of the shares of SIC Ltd. (with a total capital of $ 4.800.000) was acquired by HOR Ltd. the Balance Sheet of SIC Ltd. showed a debit balance of $ 2.400.000 on 1st January 2017 and a credit balance of $ 1.440.000 on 31 December 2017. The investment by HOR Ltd. in shares of SIC Ltd. Is $ 3.600.000. Calculate the cost of control or capital reserve. (a) 720000 (b) 620000 (c) 360000 (d) 180000 7. Cash payments to and on behalf of employees is an example of: (a) Cash flow from Operating activities (b) Cash flow from Investing activities (c) Cash flow from Financing activities (d) None of the above 8.Financial Reporting Council is an organisation of which country? (a) The USA (b) The UK (c) Australia (d) Canada