1. Hot Plc owns 80% of the issued share capital of Warm Plc and 40% of the issued share capital of Cold Plc. In the individual accounts, the income tax expenses for the year are as follows: 3 Hot Plc GH¢20,000 Warm Plc GH¢18,000 Cold Plc GH¢10,000 At what amount should the income tax expense appear in the consolidated statement of profit or loss? [Note: The share of profit of Associate is shown in the statement of profit or loss at a figure net of tax]

A. GH¢34,400 

B. GH¢38,000 

C. GH¢42,000 

D. GH¢48,000

2. House Plc owns 80% of the issued share capital of Window Plc and 25% of the issued share capital of Door Plc. The revenues for the year are as follows: House Plc GH¢1,500,000 Window Plc GH¢1,000,000 Door Plc GH¢160,000 What amount for revenue should appear in the consolidated statement of profit or loss for the year?

A. GH¢2,300,000 

B. GH¢2,500,000 

C. GH¢2,540,000 

D. GH¢2,266,000

3. Glory Plc holds 10% investment in Adom Plc at GHC24,000 and accounts for it in line with IFRS 9. On 1 January 2018 Glory acquired a further 50% of Adom Plc’s ordinary shares at a cost of GHC160,000. On 1 January 2018, the net assets of Adom Plc were assessed to have total value of GHC 200,000, the NCI was fair valued at GHC100,000 and the 10% previously held was assessed to have a fair value of GHC 26,000. Calculate the Goodwill arising from the acquisition of Adom Plc.

A. GHC 86,000 

B. GHC 66,000 

C. GHC 100,000 

D. GHC20,000

4.Which of the following situations would compel the management of a company to embark on a capital reduction/reorganization scheme?

A. When it wants to make a rights issue 

B. When the company is to be liquidated 

C. When the company makes persistent losses but management is optimistic about a positive turn around 

D. When the company wants to reward the existing shareholders by he issue of bonus shares