Question
On 1 July 2015 Heaven Ltd acquired all the issued shares of Hell Ltd for $130,000. At that date the accounts of Hell Ltd show
On 1 July 2015 Heaven Ltd acquired all the issued shares of Hell Ltd for $130,000. At that date the accounts of Hell Ltd show the following:
| Share capital | $ 50,000 |
| General reserve | $ 10,000 |
| Retained earnings | $ 15,000 |
On 1 July 2015 a plant owned by Hell Ltd was undervalued by $40,000. The plant was purchased for $150,000 at 1 July 2010 with estimated useful life of 20 years. Hell Ltd had a land with carrying amount of $40,000 that is valued at $60,000 on 1 July 2015. The land was sold by 30 June 2016.
On 1 January 2018, Hell Ltd sold an item of inventory costing $100,000 to Heaven Ltd for $140,000. Heaven Ltd treated this item as part of its equipment and depreciated it at 20% per annum on a straight-line basis.
The consolidation adjustment entries related to the intra-group sale of inventory/ equipment at 30 June 2018 are as follows:
|
| Debit | Credit |
| Sales Revenue | aaa |
|
| COGS |
| bbb |
| Equipment |
| ccc |
|
|
|
|
| DTA | ddd |
|
| ITE |
| ddd |
|
|
|
|
| Accumulated depreciation | eee |
|
| Depreciation expense |
| eee |
|
|
|
|
| ITE | fff |
|
| DTA |
| fff |
|
|
|
|
Type in the value for fff
Answer:
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Audit Committee Formation In The Aftermath Of 2007 2009 Global Financial Crisis Structure And Roles Volume 1 Financial Accounting And Auditing Collection
Authors: Zabihollah Rezaee
1st Edition
1631571567, 978-1631571565
