Only the question 2 and 3 in attached file are required answers thank you

Unit: ACC204 - Advanced Financial Accounting Weighting: The assignment is worth 40% of the total unit weight. Instructions: 1. 2. Students are required to cover all stated requirements. Your answer must be both uploaded to Moodle in word file and handed over a printed copy. 3. You need to support your answers with appropriate Harvard style references where necessary. 4. Only include information in your appendixes that has been directly referred to in the body of your document. 5. Include a title/cover page containing the subject title and code and the name, student id numbers. 6. Please save the document as ACC204AT2_first name_Surename_Student Number Eg:ACC204AT2_John_Smith_NA20150000 1 Question 1: Accounting for Lease Owing to low liquidity, Lisa Ltd decides on 1 July 2015 to sell its land and buildings to Anderson Ltd. The carrying values of the land and buildings in the books of Lisa Ltd, at 1 July 2015, are: Buildings, at cost Accumulated depreciation The land and buildings are sold for $4334 700 (their fair value), with the amount being allocated equally as follows: Land $2167350 Buildings $2167350 Immediately following the sale, Lisa Ltd decides to lease back the land and buildings from Anderson Ltd. The term of the lease is 20 years. The implicit interest rate in the lease is 12 per cent. It is expected that the buildings will be demolished at the end of the lease term. The lease is non-cancellable, returns the land and buildings to Anderson Ltd at the end of the lease, and requires the following lease payments: Payment on inception of the lease on 1 July 2015 $600000 Payment on 30 June each year starting 30 June 2016 $500000 There is no residual payment required REQUIRED a) Provide the entries for the sale and leaseback in the books of Lisa Ltd as at 1 July 2015. b) Provide the entries for the purchase and lease in the books of Anderson ltd as at 1 July 2015 c) Provide the entries in the books of Lisa Ltd as at 30 June 2025. d) Provide the entries in the books of Anderson Ltd as at 30 June 2025. Question 2: Accounting for Income Tax MR Limited commences operations on 1 July 2014 and presents its first statement of comprehensive income and first statement of financial position on 30 June 2015. The statements are prepared before considering taxation. The following information is available: Statement of comprehensive income for the year ended 30 June 2015 Grossprofit Expenses Administrationexpenses Salaries Long-serviceleave Warrantyexpenses Depreciation expense-plant Insurance Accounting profit before tax 730000 80000 200000 20000 30000 80000 20000 430000 300000 Assets and liabilities as disclosed in the statement of financial position as at 30 June 2015 2 Assets Cash Inventory Accountsreceivable Prepaidinsurance Plant-cost lessAccumulateddepreciation Totalassets Liabilities Accountspayable Provision for warranty expenses Loanpayable Provision for long-service leave expenses Totalliabilities Netassets 400000 80000 20000 100000 100000 10000 320000 550000 80000 20000 200000 -20000 320000 230000 Other information All administration and salaries expenses incurred have been paid as at year end. None of the long-service leave expense has actually been paid. It is not deductible until it is actually paid. Warranty expenses were accrued and, at year end, actual payments of $10000 had been made (leaving an accrued balance of $20000). Deductions are available only when the amounts are paid and not as they are accrued. Insurance was initially prepaid to the amount of $30 000. At year end, the unused component of the prepaid insurance amounted to $10000. Actual amounts paid are allowed as a tax deduction. Amounts received from sales, including those on credit terms, are taxed at the time the sale is made. The plant is depreciated over five years for accounting purposes, but over four years for taxation purposes. The tax rate is 30 per cent. REQUIRED Provide the journal entries to account for tax in accordance with AASB 112. Question 3: Consolidation Sandy Ltd acquired 100 per cent of the issued capital of Beach Ltd on 30 June 2014 for $900 000, when the statement of financial position of Beach Ltd was as follows: Assets Accountsreceivable Inventory Land Property, plant and equip. Accumulated depreciation $000 70 100 400 700 -270 1000 $000 Loan Shareholders'equity Sharecapital Retainedearnings 300 500 200 1000 3 Additional information The tax rate is 30 per cent. As at the date of acquisition, all assets of Beach Ltd were at fair value, other than the property, plant and equipment, which had a fair value of $530000. Beach Ltd adopts the cost model for measuring its property, plant and equipment. The property, plant and equipment is expected to have a remaining useful life of 10 years, and no residual value. One year following acquisition it was considered that Beach Ltd's goodwill had a recoverable amount of $60000. Beach Ltd declared a dividend of $40000 on 10 July 2014, with the dividends being paid from preacquisition retained earnings. The statements of financial position and statements of comprehensive income of Sandy Ltd and Beach Ltd one year after acquisition are as follows: Statements of financial position of Sandy Ltd and Beach Ltd as at 30 June 2015 Assets Cash Accountsreceivable Inventory Land Property, plant and equipment Accumulated depreciation Investment in Beach Ltd Total assets Liabilities Accountspayable Dividendspayable Loan Shareholders'equity Sharecapital Retainedearnings Sandy Ltd $000 Beach Ltd $000 80 50 140 600 900 -300 900 2370 40 50 123 400 700 -313 1000 100 100 670 10 50 140 1000 500 2370 500 300 1000 400 300 -90 -110 500 190 200 -40 -50 300 Reconciliation of opening and closing retained earnings Profit after tax Retained earnings -30 June 2014 Interimdividend Finaldividend Retained earnings -30 June 2015 REQUIRED Prepare the consolidated statement of financial position for the above entities as at 30 June 2015. 4