2. Kiwi Ltd acquired 100% of Banjo Ltd, an Australian company, on 1 July 2019....
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2. Kiwi Ltd acquired 100% of Banjo Ltd, an Australian company, on 1 July 2019. The balance sheet of Banjo Ltd on that date was as follows: Balance sheet at 1 July 2019 A$ A$ Machinery at cost 560,000 Share capital 400,000 Investment property General reserve 200,000 400,000 100,000 Receivables Retained earnings 600,000 Cash 140,000 1,200,000 1,200,000 The balance sheet of Banjo Ltd as at 30 June 2020 is as follows: Balance sheet as at 30 June 2020 A$ | A$ Machinery - carrying value 300,000 Share capital 400,000 Investment property 400,000 General Reserve 200,000 Receivables 500,000 Retained earnings 1,000,000 Cash 600,000 Accounts payable 170,000 Income tax payable 30,000 1,800,000 1,800,000 Relevant exchange rates are as follows: NZ$ A$ 1 July 2019 1.00= 0.95 30 June 2020 1.00= 0.85 Average 2019-20 1.00= 0.90 If the functional currency of Banjo Ltd is the Australian dollar and the presentation currency is the New Zealand dollar, the total assets of A$1,800 000 would translate into New Zealand dollars as: Select one: O a. $2,000,000 b. $1,560,000 O c. $1,710,000 O d. $2,117,647
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