Question 1 (1 point)

At 30 June 2018, the carrying amount of an asset is $200 000 and its tax base is $160 000. The tax rate is 30 per cent. At 30 June 2018, in relation to this asset, which one of the following items would be recognised?

Question 1 options:

A)	deferred tax asset of $12 000

B)	deferred tax liability of $48 000

C)	deferred tax asset of $48 000

D)	deferred tax liability of $12 000

Question 2 (1 point)

As AASB 3: Business Combinations indicate, if at the date of acquisition the subsidiary's assets are not recorded at fair value we can

Question 2 options:

A)	discount the fair value of these assets

B)	revalue the identifiable assets in the accounting records of the subsidiary after consolidation, or recognise the necessary adjustments on consolidation.

C)	ignore the fair value of these assets

D)	revalue the identifiable assets in the accounting records of the subsidiary before consolidation, or recognise the necessary adjustments on consolidation.

Question 3 (4 points)

In your own words, provide detailed explanations of at least one pro-regulation and one anti-regulation perspective? (4 marks)

Question 3 options: Question 4 (6 points)

For the year ended 30 June 2025, Sandy Ltd (Sandy) had a taxable profit of $230 000. The following comparative information was ascertained from the tax calculations of Sandy. 2024 2025 Deferred tax asset $78 000 $92 000 Deferred tax liability $40 000 $34 000 The tax rate is 30 per cent. What is the amount of tax expense of Sandy for the year ended 30 June 2025? Show your workings and calculations (6 marks)

andy Ltd (Sandy) measures its investment in Bill Ltd (Bill) shares at fair value. Bill shares are listed and actively traded on the stock exchange. Which one of the following valuations should Sandy use to measure its investment in shares in Bill in its financial statements at 30 June 2023?

Question 5 options:

A)	an estimate derived from a model that uses Sandys estimates of Bills future profits and required rate of return

B)	the closing price of Bill shares on the stock market at 30 June 2023

C)	the average price of Bill shares on the stock market from 1 June 2023 to 30 June 2023

D)	an estimate derived from a model that uses observable industry growth rates and past cash flows

Question 6 (1 point)

Amanda Ltd (Amanda) is testing an asset for impairment. The carrying amount of the asset is $170,000. The following data has been obtained by Amanda in relation to the asset: future cash flows expected to be derived from the asset-$200 000 estimated fair value of the asset- $160000 present value of future cash flows expected to be derived from the asset-$120 000 costs of disposal of the asset-$4000 In accordance with IAS 36 Impairment of Assets, which one of the following is the recoverable amount of the asset?

Question 6 options:

A)

$60 000

B)

$80 000

C)

$156 000

D)

$100 000