QUESTION 1 40 Marks 1 is Additional information: 1. On 1 March 2021, Ryder increased its 70% interest in Manard Ltd to 90%, at a total cost of N$10 000 . The purchase price was settled partly by issuing 1000 shares of N\$1 each for N\$7000 The remainder was paid in cash. At the date of acquisition of the interest, the net assets of Manard wern as follows: 2. Ryder purchased a 60% interest in Roland Ltd on 1 July 2019 for N\$3000. On that date, the carrying values of the net identifiable assets approximated their fair values and the Statement of Financial position of Roland indicated the following equity: Share capital (2500 shares) NS2500 NS2000 Retained eamings On 1 January 2021 a 3td of this interest was sold for N\$1600. On 1 January 2021, the fair value of the remaining investment in Roland Ltd was N\$3200 and the carrying amounts of the assets of Roland Ltd were as follows: The recoverable amount of goodwill was NS270 on 30 June 2020 and NS255 on 1 January 2021. 3. On 1 July 2020, Ryder entered into a lease agreement. Ryder did not elect the simplified accounting treatment for the equipment. In terms of the agreement, equipment with a cost of N\$550 was leased for a period of five years. The interest rate is 10% per annum and instalments are payable annually in arrears on 1 July. 4. The following are, inter alia, included in profit before taxation: FACULTY OF COMMERCE, MANAGEMENT AND LAW 5. Ryder invested N$100 in a fixed deposit in the USA on 30 June 2020. At that date, the exchange rate was $1=N$6.90. On 30 June 2021 , the exchange rate was $1=N$9.30 6. Accept a tax rate of 30%. Ignore Capital gains tax as it is not applicable in Namibia and ignore VAT