Question 5 0.5 pts Hitz Limited, a subsidiary entity, sold a non-current asset at a loss to its parent entity, Tonight Limited in prior year. The adjustment necessary on consolidation to reflect the tax effect of this transaction will result in: an increase in deferred tax liabilities an increase in deferred tax assets an increase in a loss on disposal of the non-current asset an decrement to non-controlling interest balances Question 10 0.5 pts When an item of a plant and machinery was revalued downwards at Group level at the acquisition date and it is now being derecognised in the current financial year, the treatment related to this item includes: Debiting the Revaluation Surplus recognised on consolidation and debiting the loss on sale of the asset after tax o Debiting the loss on sale of the asset after tax and crediting Revaluation Surplus recognised on consolidation at group level Crediting the loss on sale of the asset after tax and debiting Revaluation Surplus recognised on consolidation at group level o Crediting retained earnings b/f and debiting Revaluation Surplus recognised on consolidation at group level Question 15 0.5 pts Patsy Ltd acquired 100% of Lampard Ltd on 1 July 2020. At acquisition date, Lampard Ltd had the following items: - Retained earnings $50 000 - Share capital $80 000 - Consolidation revaluation reserve $100 000 In the year following the acquisition, Lampard Ltd paid a bonus share dividend of $33 000 out of pre-acquisition retained earnings. The following consolidation adjustment is needed in the consolidation worksheet for 30 June 2021: Dr. Share capital $33 000 Cr. Bonus dividend paid $33 000 Dr. Bonus dividends $33 000 Cr. Share capital $33 000 Dr. Capitalised profit reserve $33 000 Cr. Bonus dividend paid $33 000 Dr. Retained earnings $33 000 Cr. Capitalised profit reserve $33 000 Question 20 0.5 pts On 1 July 2020 George Limited, a joint venturer, acquired a 30% share of Genevieve Limited. At that date, the following assets had carrying amounts different to their fair values in Genevieve's books. Carrying Asset Fair value amount Inventories $25 000 $35 000 Equipment $48 000 $60 000 All inventories were sold to third parties by 30 June 2021. On 1 July 2020, the equipment had a remaining useful life of 4 years. The tax rate was 30%. The adjustment required to the investment in the joint venture account at 30 June 2021 in relation to the above assets would be: $9 100 $6 370 $2 730 $4 620