Question 1 James Ltd is a wholly owned subsidiary by Tommy Ltd. On 3 June 2022, Tommy Ltd sold a batch of inventories to James Ltd for $2 million. These inventories were originally purchased from an external supplier for $1 million. James Ltd sold these inventories back to Tommy Ltd for $2.5 million on 20 June. By 30 June 2020, Tommy Ltd have sold 50% of these inventories to external parties for $1.8 million. From the perspective of the group consisting of James Ltd and Tommy Ltd, what is the cost of goods sold for the fiscal year ended 30 June 2022? a. 0.9 million b. 1 million c. 1.5 million d. 0.5 million e. 1.25 million Question 2 Which of the following statements are correct: i. Goodwill is measured directly by reference to the market value of goodwill. ii. Gain on bargain purchase is recognised in other comprehensive income. iii. Goodwill is an unidentifiable asset. iv. Only acquired goodwill is recognised. V. Goodwill is amortised over its useful life. vi. Gain on bargain purchase and goodwill can be recognised simultaneously. a. iii and iv b. ii, iv and vi c. ii and v d. none e. , ii and iv Question 3 Which of the following statements are correct when dealing with non-current assets: 1. A single entity can choose to record their Sydney buildings at fair value while recording their Hobart buildings at historical cost. Gains on the revaluation of assets under the revaluation model are not always recorded through other comprehensive income. An entity cannot record a self-developed brand at fair value