Question 21 0.5 pts Luke Limited acquired a 33% interest in Warm Ltd for $75 000 and Luke Limited has a number of subsidiaries. In the financial period immediately following the date on which it became an associate, Warm Ltd generated profits after tax of $50 000 and declared dividends of $8 000. If equity accounting is to be applied, the balance in the investor's account 'Investment in Associate' would be: $13 860 $88 860 $94 140 $19 140 Question 22 0.5 pts For an organisation to be sustainable in the long term, it must: O All of the given answers are correct be financially secured act in conformity with legal and societal expectations measure both its negative and positive output from value creation and to minimise or eliminate its negative environmental impacts Question 26 0.5 pts Labrador Ltd sold inventories (with a cost to produce of $85 000) to its parent company, Golden Ltd for $145 000. One third of the inventories were sold to Sulky Ltd before the financial year end. Tax rate was 30%. Which of the following statements is correct with respect to this transaction? Consolidated profit will increase by $42 000. Consolidated profit will decrease by $42 000. Consolidated profit will decrease by $40 000. o o Consolidated profit will decrease by $28 000. Question 27 0.5 pts Smith Limited sold inventories to its subsidiary, Zach Limited, during the financial year ended 30 June 2020. At 30 June 2020, 80 per cent of these inventories remained unsold. The inventories were held by Zach Limited at a value of $55 000 and were sold with an 70 per cent mark-up to Will Limited. By 30 June 2021 all of these inventories was sold. Tax rate was 30%. What would be the consolidation adjustments for these inventories at 30 June 2021? Dr. Retained earnings b/f 30 800 Cr. Inventories 30 800 Dr. Retained earnings b/f 26 950 Cr. Cost of goods sold 26 950 Dr. Retained earnings b/f 21 560 Cr. Cost of goods sold 21 560 O Dr. Sales 21 560 Cr. Cost of goods sold 21 560