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/ 30 800 Cr. Inventories 30 800 Dr. Retained earnings b/f 26950 Cr. Cost of goods sold 26 950 Dr. Retained earnings b/t 21 560 Cr. Cost of goods sold 21 560 Dr. Sales 21 560 Cr. Cost of goods sold 21 560 D Question 28 0.5 pts Purchased goodwill is recognised as the amount of: the excess of the cost of acquisition incurred by an acquirer over the fair value of the identifiable net assets including fair value of contingent assets and liabilities acquired the excess of the cost of acquisition incurred by an acquirer over the fair value of the identifiable liabilities acquired including fair value of contingent assets acquired the lower of the sum of related expenditure on advertising and promotion undertaken in the past two years by the subsidiary being purchased and the independent valuation of the market value of that subsidiary's goodwill the difference between fair values and the carrying amount of the net assets of the company acquired Question 30 0.5 pts Super Limited acquired a 42% investment in Fantastic Limited for $850 000. Fantastic Limited declared and paid a dividend of $25 000 during the current financial year. Super Limited does not have any subsidiary. Which of the following would be the most appropriate journal entry for Super Limited to record this dividend in its books? Dr. Dividend income $25 000 Cr. Investment in Fantastic Limited $25 000 Dr. Cash $10 500 Cr. Investment in Fantastic Limited $10 500 Dr. Cash $25 000 Cr. Dividend income $25 000 Dr. Dividend income $10 500 Cr. Investment in Fantastic Limited $10 500 Previous Question 22 0.5 pts For an organisation to be sustainable in the long term, it must: 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