Question 1:On 1 July 20X3 Alpha Ltd acquired a 25% share of Beta Ltd. At that date the following assets had carrying amounts different to their fair values in Beta's books:

AssetCarrying

amount

Fair valueInventories$12000$15000Machinery$24000$30000All inventories were sold to third parties by 30 June 20X4. On 1 July 20X3, the machinery had a remaining useful life of 3 years.

The tax rate is 30%.

The adjustment required to the investment in associate account at 30 June 20X5 in relation to the above assets is:

Question2:Clovelly Ltd, owns 25% of Bronte Ltd. Bronte's profit after tax for the year ended 30 June 20X3 is $30000. The tax rate is 30%. During the year ended 30 June 20X4, Bronte sold $5000 worth of inventories to Clovelly. These items had previously cost Bronte $3000. All the items remain unsold by the Clovelly at 30 June 20X3. Clovelly's share of Bronte's profit for the year ended 30 June 20X3 is: