Multiple choice questions 3 Question 1 Kansas Limited has two subsidiary entities, Emma Limited and Goldie Limited. Kansas Limited owns 100% of the shares in both entities. Details of the issued share capital (post-consolidation) are: Kansas Limited $300 000 Emma Limited $90 000 Goldie Limited $75 000 The consolidated share capital amount of the Kansas - Emma - Goldie group is: Select one: a. $135 000 b. $465 000 c. $165 000 d. $300 000 Question 2 Safe acquired 100% of the share capital of Blue. At the date of the acquisition, the buildings recorded in Blue's financial statement had a cost value of 115,000 and accumulated depreciation of 49,000. The fair value of Blue's Buildings on acquisition date was 71,000. Company tax rate is 30%. What is the business combination valuation entry to be recognised by Safe for the Building at acquisition date ? a. DR Buildings $ 3,000 CR Deferred Tax Liability $ 900 CR BCVR $ 2,100 b. DR Accumulated Depreciation $ 49,000 CR Buildings $ 46,000 CR Deferred Tax Liability $ 900 CR BCVR $ 2,100 C. DR Accumulated Depreciation $ 47,000 CR Buildings $ 44,000 CR Deferred Tax Liability $ 900 CR BCVR $ 2,100 d. None of the other options. e. DR Accumulated Depreciation $ 47,000 CR Buildings $ 44,000 CR Deferred Tax Liability $ 1,050 CR BCVR $ 1,950 Question 3 Bob acquired the identifiable assets and liabilities of Tab for 270,000 cash and with Bob issuing it's 10,000 of it's own shares as consideration. Shares had a fair value of $6. Tab incurred incidental costs of 2,500 and share issue cost of 1,800 which was paid in cash. Tabs net assets had fair value of 312,000. Bob's journal entries to record the acquisition would include: Dr Goodwill 13,700 b. Dr Acquisition related expenses 4,300 c. Dr Share Capital 61,800 d. Cr Cash 330,000 e. None of the options