Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. question 4 (20 marks) 4.1 use the information belo

QUESTION 4 (20 Marks) 4.1 Use the information below INFORMATION AB Ltd acquired 85% of...

70.2K

Verified Solution

Question

Accounting

QUESTION 4 (20 Marks) 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

Basic Math
1.2K views

A coin will be tossed 5 times. The chance of getting exactly 2 heads among 5...

Biology
1.2K views

Imagine that you discover a novel mutation in a G1 S cyclin that is found...

Physics
1.2K views

A step up transformer has turn ratio 1 10 A cell of e m f...

Physics
1.2K views

A mixture of ideal gas contains 5 moles of monatomic gas and 1 mole of...

Physics
1.2K views

Example 6 6 A block of mass m 1 kg moving on a horizontal surface...

Basic Math
1.2K views

A projectile is shot upward from the surface of Earth with an initial velocity of...

Calculus
1.2K views

Find a power series for the function centered at c 3 2x 1 f x...

Accounting
1.2K views

Helen Crawford created a corporation...

Accounting
1.2K views

Summarize the key steps in planning and executing change in a 1-page journal entry...

Accounting
1.2K views

Bill & Lisa Limited did not pay dividends on its 7.0%, $100 par value cumulative...

Accounting
1.2K views

Q#3: Solve the equation Ax = b by using the LU factorization for A, where...

Finance
1.2K views

A health insurance policy pays 85 percent of physical therapy costs after a $200 deductible....