Question
Company transactions The following transactions occurred for Andrew Ltd for the year ended 30 June 2019: a Income tax expense for the current period was
Company transactions
The following transactions occurred for Andrew Ltd for the year ended 30 June 2019:
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a Income tax expense for the current period was determined at year-end.
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b Ordinary dividends declared are paid.
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c One shareholder sold its shares in Andrew Ltd to another company. The shares were sold at a loss.
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d A fire destroyed most of Andrews inventory. The inventory was uninsured.
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e The price of shares in Andrew Ltd fell.
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f Accounts payable were paid.
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g Andrew Ltd provided for future warranty claims.
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h Depreciation was charged on a building.
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i A provision was created for obsolete stock.
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j Internally generated goodwill declined throughout the year.
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k Andrew Ltd may be liable for damages incurred by a consumer using one of its products. It is likely that
some payment will be required. The amount is dependent upon the outcome of a court case.
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l A bad debt was written off. No amount had been provided in previous years.
Required:
Which of the above transactions would result in an expense for the year?
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