Question 3

A)

On 1 July 2022, Han Solo Ltd acquired 80 per cent of the share capital of Chewbacca Ltd for $400 000, which represented the fair value of the consideration paid, when the share capital and reserves of Chewbacca Ltd were:

All assets of Chewbacca Ltd were recorded at fair value at acquisition date, except for equipment that had a fair value $20 000 greater than its carrying amount. The cost of the equipment was $40 000 and it had accumulated depreciation of $10 000. The tax rate is 30 per cent. Using the partial goodwill method, what is the amount of fair value adjustment and goodwill, respectively, on 1 July 2022 for non-controlling interests in Chewbacca Ltd?

1. $ 2800; zero
2. $11 200; 22 200
3. $ 2 800; $22 200
4. $11 200; $88 800

B)

An exception to the requirement that foreign currency monetary items should be re-translated at the reporting date is:

1. when the foreign exchange rate is considered to be undervalued.
2. when the foreign currency exchange rate is fixed for a particular transaction according to a contractual arrangement.
3. when exchange rates are expected to move in the opposite direction shortly after reporting date.
4. when the foreign exchange rate is considered to be overvalued.

c)

Companies A, B and C are all part of the one economic entity, but are all separate legal entities required to prepare their own financial statements. Company A sold Company B inventory that cost $60, 000 for $80,000. At the end of the same period Company B has three-quarters of that inventory still on hand and the rest has been sold to an entity outside the economic group. At what amount should the inventory remaining in Company B be recorded in the consolidated statements?

1. $14 625
2. $60, 000
3. $58 500
4. $45, 000

Note:-Please provide the single answers for each question 3 question. Just need answers from option no explaination.Thumps up

Thank you very much

\begin{tabular}{|l|r|} \hline Share capital & $300000 \\ \hline Revaluation surplus & $100000 \\ \hline Retained earnings & $100000 \\ \hline & $500000 \\ \hline \end{tabular}