23. Mike BC

Mike Limited acquired the identifiable assets and liabilities of Jordan Limited for $690,000. The items acquired, stated at fair value, are: land $460,000; inventories $180,000; accounts receivable $100,000; brand $70,000; bank loan $105,000. The difference on acquisition is:

Select one:

a. gain on bargain purchase $15,000

b. goodwill of $15,000

c. goodwill of $120,000

d. gain on bargain purchase $120,000

[7:17 PM]

24. As per AASB 136 Impairment of Assets, the recoverable amount test requires an...

As per AASB 136 Impairment of Assets, the recoverable amount test requires an entity to compare the fair value of an asset less costs to sell, with:

Select one:

a. its value in use.

b. the costs directly attributable to the liquidation of the asset.

c. its disposal value.

d. the amount obtainable from the sale of the asset.

[7:17 PM]

25. Goodwill acquired under a business combination is subject to an impairment ...

Goodwill acquired under a business combination is subject to an impairment test every:

Select one:

a. five years.

b. year.

c. three years.

d. two years.

[7:17 PM]

26. How often must an impairment test be applied to tangible assets?

How often must an impairment test be applied to tangible assets?

Select one:

a. at each reporting date including interim reporting dates such as half-year.

b. only when there is an indication that the asset may be impaired.

c. at the end of each financial year.

d. every two years.

[7:18 PM]

27. When a depreciable asset is measured using the cost model, an impairment loss...

When a depreciable asset is measured using the cost model, an impairment loss is:

Select one:

a. recognised directly in equity.

b. included in the balance of the accumulated depreciation and impairment losses account for that asset.

c. set off against the balance of revenue.

[7:18 PM]

28.Berry Pty Ltd has two cash generating units. CGU A had a carrying amount of ...

Berry Pty Ltd has two cash generating units. CGU A had a carrying amount of $1,700 and value in use of $1,750. CGU B has a carrying amount of $1,900 and a value in use of $1,800. The carrying amount of the head office assets is $1,400. CGU A and B utilise the head office services equally. The impairment loss for CGU A is:

Select one:

a. $1,350.

b. $0.

c. $650.

d. $800.

[7:19 PM]

29. Parkes Limited recognised an impairment loss of $20,000 against a ...

Parkes Limited recognised an impairment loss of $20,000 against a cash-generating unit containing the following assets: buildings (net) $50,000; patent (net) $110,000; equipment (net) $40,000. The net carrying amount of the patent after allocation of the impairment loss is:

Select one:

a. $ 90,000

b. $ 99,000

c. $ 11,000

d. $ 110,000

[7:20 PM]

30. At reporting date Guzzle Limited estimated an impairment loss of $50,000 ...

At reporting date Guzzle Limited estimated an impairment loss of $50,000 against its single cash-generating unit. The company had the following assets: headquarters building $200,000; plant $120,000; equipment $40,000. The net carrying amount of the headquarters building after allocation of the impairment loss is:

Select one:

a. $150,000

b. $172,222

c. $103,333

d. $27,778