18. PQR Ltd owns all of the shares of ABC Ltd. In relation to the following intergroup transaction, select the correct consolidation worksheet adjusting entries for preparation of the consolidated financial statements as at 30 June 2020. Assume an income tax rate of 30%.

In January 2020, ABC Ltd declared a $13,500 dividend

Select one:

a. Dr Dividend payable $13,500, Cr Dividend receivable $13,500

b. Dr Dividend payable $13,500, Cr Dividend receivable $13,500, Dr Dividend revenue $13,500, Cr Dividend declared $13,500

c. Dr Dividend revenue $13,500, Cr Dividend declared $13,500

d. Dr Dividend receivable $13,500, Cr Dividend payable $13,500, Dr Dividend declared $13,500, Cr Dividend revenue $13,500

15. On 1 January 2020, Fred Ltd acquired all the issued shares (non cum. div.) of Kent Ltd for $750 000. At that date, the equity of Kent Ltd was recorded at:

Share capital $350,000

Reserves 150,000

Retained earnings 100 000

On 1 January 2020, the records of Kent Ltd also showed that the carrying value of the land is $40,000 with a fair value of $50,000 . Further Kent Ltd had a dividend payable of $5 000, the dividend to be paid in March 2020. All other assets and liabilities were carried at amounts equal to their fair values. Tax rate is 30%.

Required:

According to the Acquisition Analysis prepared on 01/07/2019, the Goodwill or gain on bargain purchase would be:

Select one:

a. Goodwill, $145,000

b. Goodwill, $140,000

c. Goodwill, $143,000

d. Gain on bargain purchase, $135,000

13. On 1 July 2018, King Ltd leased a vehicle from Queen Company. The vehicle cost Queen Company $49,550.60 considered to be its fair value on that same day. However, the PV of the lease payment by King Ltd at 1 July 2020 $48,450.80

Required journal entries for the Company King (lessee) at 01 July 2018?

Select one:

a. Right-of-use vehicle Dr $48,450.80 - Lease liability Cr $48,450.80

b. Lease receivable Dr $48,450.80 - Lease Income Cr $48,450.80

c. Right-of-use vehicle Dr $48,450.80 - Lease receivable Cr $48,450.80

d. Lease Income Dr $49,550.60 - Lease liability Cr $49,550.60