Plant at cost 300000 e No entries are required because the transfer is a

Plant at cost 300000 e no entries are required

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CR. Plant at cost $ 300,000 e) No entries are required because the transfer is a downstream transaction 5) The worksheet entries for excess depreciation on transferred plant are: a) DR. Accumulated depreciation $ 300,000 CR. Depreciation expense $ 300,000 DR. Income tax expense $ 90,000 CR. Deferred tax asset $ 90,000 b) DR. Depreciation expense $ 100,000 CR. Accumulated depreciation $ 100,000 DR. Deferred tax asset $ 30,000 CR. Income tax expense $ 30,000 c) DR. Accumulated depreciation $ 100,000 CR. Depreciation expense $ 100,000 DR. Income tax expense $ 30,000 CR. Deferred tax asset $ 30,000 d) DR. Accumulated depreciation $ 100,000 CR. Retained profits (opening) $ 100,000 DR. Retained profits (opening) $ 30,000 CR. Deferred tax asset $ 30,000 e) No entries are required because the transfer is a downstream transaction
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Use the information below to answer questions 36 to 40 On 1 January 20X1, AAA Ltd (AAA) acquired 80% of the shares of BBB Ltd (BBB). On the same date BBB acquired 60% of the shares of CCC Ltd (CCC). 80%60%AAABBBCCCThe identifiable net assets of CCC at the date of acquisition at fair value are represented by: Share capital $1,000,000 Retained profits 1.1.X1 $ 800,000 CCC’s retained profits at 31 December 20X3 are explained as follows: Retained profits 1.1.X3 $1,700,000 Add: Net Profit for the 20X3 year 3,000,000 Less: Dividends Paid (300,000)Retained profits 31.12.X3 $4,400,000 There have been no other movements in the equity of CCC since 1 January 20X1. 6)The ownership interests in CCC are: a)Direct PEI 80% Direct MI 20% b)Indirect PEI 48% Direct MI 60% Indirect MI 12% c)Indirect PEI 48% Direct MI 40% Indirect MI 12% d)Indirect PEI 80% Direct MI 40% Indirect MI 12% e)Direct PEI 100% 7)The worksheet entry for minority interest in CCC at 1 January 20X1 is:
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  • One '11
  • KNAPP
  • Financial Accounting, Generally Accepted Accounting Principles, Deferred tax asset, Cr.

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