QUESTION 1

For the year ended 30 June 2012 Miranda Ltd has the following information

Revenue	$770,000
Expenses (excl. Depreciation):	$363,000

The firms only asset is a machine which cost $101,000. The machine is depreciated over 7 years for tax purposes and 3 years for accounting purposes Tax rate is 30%The tax entry ay 30 June 2012 is as follows:

Dr. Income tax expense	aa
Dr. Deferred tax asset	bb
Cr. Income tax payable		cc

Calculate and enter the amount of aa, bb, cc in the answer block below

QUESTION 2

On 1 July 2015 Sarah Ltd acquires all the shares in Jane Ltd for $600,000 cash

The financial statements of Jane Ltd as at 1 July 2015 shows the following:

Retained earnings 127,000

Share capital 215,000

The tax rate is 30%

At the date of acquisition all the net assets of Jane Ltd are at fair value except for the following:

	Carrying amount	Fair value
Land	$190,000	$232,000
Equipment (cost $232,000)	$155,000	$250,000

Calculate and enter the amount of FVA and the amount of goodwill for the acquisition analysis in the answer block below: