Question 3 To reflect the tax-effect of the gain on revaluation, the required journal entry is: a. Dr Income tax expense Cr Deferred tax liability b. Dr Future income tax benefits Cr Deferred tax liability c. Dr Deferred tax liability Cr Future income tax benefits d. Dr Income tax expense Cr Gain on asset revaluation e. Dr Gain of asset revaluation Cr Asset revaluation reserve

Question 12 Indigo Ltd uses the FIFO assumption with the periodic inventory method. Units Unit cost Total cost Beginning inventory 12 $10 $120 Purchase 10 $12 $120 Purchase 6 $11 $ 66 Sales during year were 16 units. What was the value assigned to the closing stock of this item at the end of the period? a. $66 b. $120 c. $138 d. $144

Question 18 Florida Inc uses a periodic inventory system with the weighted average method of cost assignment. The following data are available. Date Units Unit Cost Total Cost Beginning inventory Jan 1 2000 $6 $12 000 Purchase Mar 13 4000 $7 $28 000 Purchase June 20 6000 $8 $48 000 Ending inventory Dec 31 1000 The cost of the ending inventory to the nearest dollar is: a. $8333. b. $8000. c. $7300. d. $6000. Question 25 Nugyen Co purchased goods for $3500. While on display, the goods were damaged and it is estimated that they can now only be sold for $2000. Additional marketing and distribution costs are $100. The net realisable value of the goods is: a. $1900. b. $2000. c. $3500. d. $3400.