9,10

S Ltd(a partially owned subsidiary), sold inventories for the first time to its parent, P itd during the reporting period ended 28 February 2015 , at a profit mark up of 25% on cost price. On 28 February 2015 inventories to the value of R100 000 (at cost to P Ltd) were still on hand. The company tax rate is 28%. Total sales from S Ltd to P L.td for the current reporting period amounted to 200000 How much is the unrealized intra group profit included in closing inventories? Select one: a. R20 000 b. R5 000 c. R100000 d. R25 000 PLtd owns 55% of the shares of S Ltd. Each share ontitles the holder to one vote at the AGM. The decisions made at the AGM direct the relevant activities of S Ltd. Identify the correct statement(s) regarding control. (i) P Ltd holds the majority of the voting rights at the ACM, (ii) P itd has the ability to use its majority voting rights at the AGM to affect its returns. (iii) P Ltd is not exposed to variable returns from S Ltd through dividends and the value of investment in S Ltd. (iv) P Ltd has control over S Ltd and S Ltd is a subsidiary of PL Ld. Select one: a. (i), (iii) and (iv) b. (i) and (iv) c. (9. (ii) and (ii) d. (i). () and (iv)