XRY-3 Please do not copy other answers. This is a different question. If copied from other answers I will downvote and report your account . Q1.

Q2.

Kappa has a portfolio of equity shares which is regarded as a trading portfolio. On 1 January 20x5 Kappa purchased 20,000 shares in a listed entity and added these shares to the trading portfolio. Kappa purchased the shares for $5-25 per share and paid a commission to the broker of 20 cents per share. Due to favourable market conditions Kappa retained these shares and they were still part of the trading portfolio at 31 March 20X5. These shares are listed on a single stock exchange. Relevant market prices (per share) are as follows: Date Bid price Offer price $ $ 1 January 20X5 5-00 5-25 31 March 20X5 5-80 6-10 Q2. Alpha currently has investments in two other entities, Beta (Note 1) and Gamma (Note 2). The draft statements of financial position of Alpha and Beta at 30 September 2018 were as follows: Alpha Beta $'000 $'000 Assets Non-current assets: Property, plant and equipment (Notes 1and 5) 775,000 380,000 Investments (Notes 1-3) 410,000 Nil 1,185,000 380,000 Current assets: Inventories (Note 4) 150,000 95,000 Trade receivables (Note 4) 100,000 80,000 Cash and cash equivalents 18,000 15,000 268,000 190,000 - Total assets 1,453,000 570,000 Equity and liabilities Equity Share capital ($1 shares) 520,000 160,000 Retained earnings 693,000 200,000 -- -- Total equity 1,213,000 360,000 Non-current liabilities: Long-term borrowings 100,000 80,000 Deferred tax 60,000 45,000 Total non-current liabilities 160,000 125,000 Current liabilities: Trade and other payables 60,000 55,000 Short-term borrowings 20,000 30,000 Total current liabilities 80,000 85,000 Total liabilities 240,000 210,000 Total equity and liabilities 1,453,000 570,000 Note 1 Alpha's investment in Beta On 1 October 2011, Alpha acquired 120 million shares in Beta and gained control of Beta on that date. The acquisition was financed by a cash payment by Alpha of $144 discounting calculations is 10% and the relevant discount factor is 0.826. Alpha correctly accounted for the payments made to the former shareholders of Beta in its own financial statements. The cost of investment figure in the financial statements of Alpha was rounded to the nearest $ million. Alpha incurred due diligence costs of $1 million relating to the acquisition of Beta and included these costs in the carrying amount of its investment in Beta. On 1 October 2011, the individual financial statements of Beta showed retained earnings of $80 million. 4 The directors of Alpha carried out a fair value exercise to measure the identifiable assets and liabilities of Beta at 1 October 2011. The following matters emerged: - Property which had a carrying amount of $120 million (land component $40 million) had an estimated fair value of $160 million (land component $60 million). The buildings component of the property had an estimated remaining useful life of 40 years at 1 October 2011. - Plant and equipment having a carrying amount of $120 million had an estimated fair value of $130 million. The estimated remaining useful life of this plant at 1 October 2011 was two years. The fair value adjustments have not been reflected in the individual financial statements of Beta. In the consolidated financial statements, the fair value adjustments will be regarded as temporary differences for the purposes of computing deferred tax. The rate of deferred tax to apply to temporary differences is 20%. On 1 October 2011, the directors of Alpha initially measured the non-controlling interest in Beta at its fair value on that date. On 1 October 2011, the fair value of an equity share in Beta (which can be used to measure the fair value of the non-controlling interest) was $1.70. No impairments of the goodwill on acquisition of Beta have been evident up to and including 30 September 2018. Note 2 - Alpha's investment in September 2018. Note 2 - Alpha's investment in Gamma On 1 October 2015, Alpha acquired 36 million shares in Gamma by means of a cash payment of $145 million. Gamma's issued share capital at that date was 120 million shares. On 1 October 2015 and 30 September 2018, the individual financial statements of Gamma showed retained earnings of $45 million and $65 million respectively. Since 1 October 2015, no other investor has owned more than 2% of the shares of Gamma. Note 3 Alpha's investment in Delta On 1 October 2012, Alpha issued 80 million of its own shares in exchange for an 80% shareholding in Delta. Delta has an issued share capital of 100 million shares. The fair value of an equity share in Alpha on that date was $1.40. The fair values of the net assets of Delta at 1 October 2012 were the same as their carrying amounts. On 1 October 2012, the directors of Alpha initially measured the non-controlling interest in Delta at its fair value on that date. On 1 October 2012, the fair value of an equity share in Delta (which can be used to measure the fair value of the non-controlling interest) was $1.10. The individual financial statements of Delta showed net assets at the following amounts: - $110 million on 1 October 2012. - $170 million on 30 September 2017. In the year ended 30 September 2018, the individual financial statements of Delta showed a profit of $24 million. On 31 March 2018, Delta paid a dividend of $9 million. On 30 June 2018, Alpha disposed of its shareholding in Delta for cash proceeds of $180 million. The individual financial statements of Alpha recognised the correct profit on disposal of its shareholding in Delta. No impairment of the goodwill on acquisition of Delta had been necessary between 1 October 2012 and 30 June 2018. Note 4 - Intra-group trading Alpha supplies a