• Water Limited acquired Boy Limited for a purchase consideration of $110 000. At acquisition date the fair value of the Boy Limiteds land asset was $80 000 and the carrying amount was $60 000. If the company tax rate is 30%, which of the following is the appropriate adjustment to recognise the tax effect of the business combination revaluation of land at acquisition date?

  I.	Dr	Deferred tax liability	$6 000
  II.	Cr	Deferred tax liability	$6 000
  III.	Dr	Deferred tax asset	$6 000
  IV.	Cr	Deferred tax asset	$6 000

• During the consolidation process, it may be necessary to make the following adjustments to the individual statements:

  	a.	business combination valuation entries.
  	b.	pre-acquisition entries.
  	c.	business combination valuation entries and pre-acquisition entries in the individual journals of the parent and the subsidiaries.
  	d.	business combination valuation entries and pre-acquisition entries in the consolidation worksheet.

• AASB 10 Consolidated Financial Statements, requires that the effect of intragroup transactions be:

  	a.	eliminated on consolidation to the extent of the parents interest in the subsidiary.
  	b.	adjusted for in the books of the parent and subsidiary to the extent of the parents interest in the subsidiary.
  	c.	adjusted for in full in the books of the parent and subsidiary.
  	d.	eliminated in full on consolidation.

• Which from the multiple choice should i pick