Claims against a company whereby the creditor has a charge against specific property is known as a:

a. circulating security interest.

b. specific debt covenant.

c. non-circulating security interest.

d. floating charge.

The details below were extracted from the accounting records of Great South East Ltd (a company in the process of liquidation).

40 000 $1 preference shares fully paid	$40 000
120 000 $1 ordinary shares paid to 50 cents	60 000
	$100 000
Cash available (after payment of all creditors)	$10 000

Assume that the constitution of Great South East Ltd states that in the event of liquidation, all shares are to rank equally, based on the number of shares held, in distributing any surplus or deficiency.

For preference shareholders, what is the amount of the actual refund or call?

The details below were extracted from the accounting records of Great South East Ltd (a company in the process of liquidation).

40 000 $1 preference shares fully paid	$40 000
120 000 $1 ordinary shares paid to 50 cents	60 000
	$100 000
Cash available (after payment of all creditors)	$10 000

Assume that the constitution of Great South East Ltd states that in the event of liquidation, all shares are to rank equally, based on the number of shares held, in distributing any surplus or deficiency.

What will be the deficiency or surplus apportioned to preference shareholders?

On 1 January 2014, Cowboys Ltd acquired all the issued shares in Tate Ltd. At that date, the plant of Tate Ltd had a fair value of $20 000 more than its carrying amount and an estimated useful life of 5 years. Tate Ltd depreciates the plant on a straight-line basis. The plant was sold to external parties on 31 December 2014. The business combination valuation entries in relation to the plant as at 30 June 2015 will include:

1. Adjustments to the plant account to recognise the fair value adjustment at acquisition date
2. Adjustments to the current depreciation expense
3. Adjustments to retained earnings (reflecting previous year's depreciation and related tax effect)
4. Transfers from business combination valuation reserve to retained earnings

Unity Limited acquired 100% of the share capital of Bellvista Limited for $300 000. Bellvista had total shareholders equity of $200 000. The book values of Bellvista Limiteds assets were: buildings $100 000, machinery $120 000. The fair values of these assets were: buildings $180 000, machinery $140 000. The tax rate is 30%. The acquisition analysis will determine:

Fredericks Limited acquired all the identifiable assets and liabilities of Nicole Limited for $134 000. Nicole's assets and liabilities as on the acquisition date (assumed at fair value) are: plant $72 000; inventories $40 000; accounts receivable $18 000; patents $10 000; goodwill $5 000; accounts payable $16 000. The difference on acquisition is:

On 1 July 2014, Peter Limited acquired all the issued shares of Kerri Limited for $100 000 when the equity of Kerri Limited consisted of:

Share capital	$70 000
Retained earnings	30 000

The pre-acquisition entry at 1 July 2014 is:

I.	Shares in Kerri Limited	Dr	100 000
	Retained earnings	Cr		30 000
	Share capital	Cr		70 000
II.	Retained earnings	Dr	30 000
	Share capital	Dr	70 000
	Shares in Kerri Limited	Cr		100 000
III.	Retained earnings	Dr	30 000
	Share capital	Dr	70 000
	Business Combination Valuation Reserve	Dr	10 000
	Shares in Kerri Limited	Cr		110 000
IV.	Goodwill	Dr	10 000
	Share capital	Dr	70 000
	Retained earnings	Dr	30 000
	Shares in Kerri Limited	Cr		110 000