Question 2 0.5 pts When a company is unable to pay its debts as and when they fall due and payable, this is referred to as: receivership insolvency liquidation administration Question 7 0.5 pts Rock Ltd sold an item of equipment to its subsidiary Moore Ltd on 1 July 2018 for $90 000. The equipment had cost Rock Ltd $175 000 when acquired on 1 July 2018. At that time the remaining useful life of the equipment was assessed to be at 7 years. The adjustment necessary on consolidation as at 1 July 2021 in relation to the sale of the equipment will result in: an increase in retained earnings and a decrease in current year profit o an increase in retained earnings and an increase in current year profit a decrease in retained earnings and an increase in current year profit a decrease in retained earnings and a decrease in current year profit Question 12 0.5 pts Which of the following statements in relation to contingent consideration is incorrect? At acquisition date, contingent consideration is measured at fair value as per AASB 3/IFRS 3 Business combinations Subsequent adjustments to contingent consideration affect the goodwill calculated at acquisition date Changes in the amount of an expected cashflow where the contingent consideration represents a liability that is within the scope of AASB 137/IAS 37 are accounted for through profit and loss Where the contingent consideration is classified as equity, there is no remeasurement required on settlement Question 17 0.5 pts Louis Limited acquired 70% of the share capital and reserves of Lochland Limited for $400 000. Share capital was $200 000 and reserves amounted to $300 000. All assets and liabilities were recorded at fair value except properties which were recorded at $50 000 above fair value. If the company tax rate was 30%, and partial goodwill method was adopted, the NCI share of equity at the date of acquisition would be: $160 500 $135 000 $139 500 $165 000