Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 4.1 use the information below information ab ltd a

4.1 Use the information below INFORMATION AB Ltd acquired 85% of the ordinary shares of...

80.2K

Verified Solution

Question

Accounting

4.1 Use the information below INFORMATION AB Ltd acquired 85% of the ordinary shares of CF Ltd. The net assets were fairly valued on 1 January 2021 except for machinery that were undervalued by R450 000. The machine was purchased on 1 January 2020 for R1 000 000 and had a useful life of 6 years. No adjustments at acquisition for the above matter. Assume a tax rate of 28% REQUIRED: Prepare the journal entries (with narrations) for the year ended 31 December 2022 (10 marks) 4.2 Read the information below: INFORMATION AB wanted to achieve a 25% GP for each sale completed. Inventory sales between AB and CF Ltd amounted to R1650 000 for the year ended 31 December 2022. Inventory on hand in CF Ltd previously purchased from AB Ltd: R675 000 (31 December 2022) R550 000 (31 December 2021) Assume a tax rate of 28% REQUIRED: Prepare the journal entries (with narrations) for the year ended 31 December 2022. (10 marks)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Algebra
1.2K views

A pet store has 12 puppies, including 5 poodles, 6 terriers, and 1 retriever. Rebecka...

Advance Math
1.2K views

.Let M = (6 6). 12 33 A) Calculate det(M) . What does this tell you about...

Advance Math
1.2K views

10. All of this was based on data collected regarding the Quantity and Price. Find the...

Accounting
1.2K views

A) Entries for Materials Cost Flows in a Process Cost System The Hershey Company manufactures chocolate confectionery products....

Physics
1.2K views

two gear combination shown The in the drawing is being used to lift the Load...

Physics
1.2K views

3 20 points The car A has a weight of 4500 lb and is traveling...

Basic Math
1.2K views

operation if possible 5 6 9 9 3 0 49 4 1 4 Select the...

Accounting
1.2K views

PULLING Problem 15-23 Comparing return on investment...

Accounting
1.2K views

2 Whirly Corporation's contribution format income statement for the most recent month is shown below....

Accounting
1.2K views

https://www.youtube.com/watch?v=GXyT-gor0Ck&list=PLbVqxLSspfMieaoF3J2SaNxvn0MvQmUVT&index=10&t=0s Saatchi and Saatchi: A Spirited Case Study Explain how/why the agreed upon/final proposed advertising...

Finance
1.2K views

Question 12 2 pts When a bond's required return is greater than its coupon interest...

Finance
1.2K views

Caine Bottling Corporation is considering the purchase of a new bottling machine. The machine would...