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 (opening balance)
4. Transfers from business combination valuation reserve to retained earnings

	a.	I only.
	b.	I, II and III only.
	c.	II, III and IV only.
	d.	I, II, III and IV.

A Ltd sells to its subsidiary, J Ltd, an item of inventories on 1 January 2017 for $6 000. The item cost A Ltd $3 000 earlier in the current year. J Ltd intends to use the item as plant with a useful life of 10 years, and no estimated salvage value. A straight-line depreciation rate of 10% p.a. is applicable. The tax rate is 30%. The worksheet entry for the year ended 30 June 2017 would include the following adjustment:

	a.	Dr Plant $3 000.
	b.	Cr Plant $3 000.
	c.	Dr Inventories $3 000.
	d.	Cr Inventories $3 000.

The test indicating that the profit on an intragroup business transaction has been realised is:

	a.	the involvement of an external party.
	b.	the generation of profit from the transaction.
	c.	whether or not a profit or loss occurred as a result of the transaction.
	d.	the presence of only entities within the group as parties to the transaction.

During the current period, a subsidiary entity sold inventories to a parent entity for $30 000. The inventories had previously cost the subsidiary entity $24 000. By reporting date the parent entity had sold 75% of inventories to a party outside the group. The company tax rate is 30%. The adjustment entry in the consolidation worksheet at reporting date is:

a.

Sales revenue	Dr	30 000
Cost of sales	Cr		24 000
Inventories	Cr		6 000
Deferred tax asset	Dr	1 800
Income tax expense	Cr		1 800

b.

Sales revenue	Dr	30 000
Cost of sales	Cr		28 500
Inventories	Cr		1 500
Deferred tax asset	Dr	450
Income tax expense	Cr		450

c.

Sales revenue	Dr	22 500
Cost of sales	Cr		18 000
Inventories	Cr		4 500
Deferred tax asset	Dr	1 350
Income tax expense	Cr		1 350

d.

Sales revenue	Dr	7 500
Cost of sales	Cr		6 000
Inventories	Cr		1 500
Deferred tax asset	Dr	450
Income tax expense	Cr		450

A Ltd sold an item of plant to its subsidiary, B Ltd, on 1 January 2017 for $25 000. The asset had cost A Ltd $30 000 and had an useful life of 6 years when acquired on 1 January 2015 from an external party. The adjustment necessary on consolidation in relation to the transfer of plant as at 30 June 2017 will result in:

	a.	an increase in current year profit.
	b.	a decrease in current year profit.
	c.	an increase in current year profit and non-current assets.
	d.	a decrease in current year profit and non-current assets.

which from multiple choice should i pick