Rainbow Ltd has control over Winnie Ltd. Rainbow sold an equipment to Winnie for $3,800,000 in January 20X5. The equipment was 3 years old when sold, and had cost Rainbow $4,500,000 to buy, with expected residual value $500,000. The residual value and remaining useful life of the equipment did not change. The equipment had been depreciated by Rainbow at 10% p.a. straight-line. The amount of the unrealised gain/loss on the sale was: Select one: A. $700,000 gain O B. $200,000 loss C. $500,000 gain D. $700,000 loss A subsidiary sold a quantity of inventory to its parent entity at the price of $53,000 in the current year. The original cost of the inventory to the subsidiary was $41,000. At the end of the year, 80% of the inventory was still on hand. The perpetual inventory system is used. For the current year, the consolidation entry to eliminate this transaction will include which of the following line items? Select one: A. Cr Inventory $9,600 O B. Cr Inventory $41,000 C. Cr Inventory $53,000 D. Cr Inventory $12,000 Broncos Limited acquired a 30% interest (significant influence) in Bennett Limited for $54,000. Broncos Limited does not prepare consolidated financial statements. Bennett Limited revalued its buildings upwards by $20,000 during the current financial period. The balance of the investment in associate account at the end of the current financial period is: Select one: A. $36 200 B. $22 200 C. $60 000 D. $54 000 This question calls on your combined skills for business advisory and corporate accounting. Suppose your business startup requires crowd funding to obtain capital of $2,000,000. You have one (only) equal business partner who could also be a director and ten subordinate employees and your product is to be sold online. You further hope to be taken over by and make capital gain from a large multinational Ltd company once your product has been proved in the marketplace. From the available options choose the most appropriate form of business whose legality is also described accurately. Select one: A Ltd company, since the minimum number of directors is already met, and to list on the stock exchange provides further avenues for financial expansion if crowdfunding fails. A partnership, because it is not legal to obtain any type of crowdfunding for a corporation. A Pty Ltd. company, because a partnership cannot be a member of a corporate group, so would deter the larger Ltd. company from making an offer. A Pty Ltd company, because it provides the necessary safeguards to owners in case the business startup is unsuccessful