10. At the start of the year a company had an opening credit balance on its current tax account of $132,000. Payments of $129,000 were made to the tax authorities during the year. At the end of the year the tax due on its trading profits was $163,000 and there was to be a reduction in the deferred tax liability of $18,000. What is the charge to tax in the statement of profit or loss and comprehensive income for the year? 11. A company has a current ratio of 0.7:1. Which ONE of the following explanations would explain why this ratio is lower than the industry average of 1.4:1 ? 12. Which of the following is NOT a feature of the acquisition accounting method? A [ ] The net assets of a subsidiary are consolidated using fair values at the date of acquisition B [ ] Profits earned prior to the acquisition date are disregarded in the preparation of consolidated accounts C [ ] Non-controlling interests in net assets and profits after tax are disclosed D [ ] Profits are consolidated from the date control is acquired by the parent 13. Given below is an extract from the income statements of Krag Co and its subsidiary Lag Co. During the year ended 31 December 20X9 Krag Co sold goods which originally cost $10000000 to Lag Co for $15000000. Lag Co still had one quarter of these goods in inventory at 31 December 20X9. Lag Co still owed Krag Co \$2 000000 in respect of these goods. What is the figure for group cost of sales for the year