Aussie Ltd Acquired 100% of Sing Sing Ltd (Sing Sing)

question 30

Multiple Choice

Aussie Ltd acquired 100% of Sing Sing Ltd (Sing Sing) on 1 July 20X0. The balance sheet of Sing Sing as at 30 June 20X1 was as follows. Balance Sheet as at 30 June 20X1
$\begin{array}{c}\begin{array}{lll}\\ \text {Machinery- carrying value}\\ \text {Investment property}\\ \text { Receivables }\\ \text {Cash}\\\\\\ \end{array}\begin{array}{r}\underline{S \$} \\ 300000 \\400000 \\500000 \\600000 \\\underline{\quad\quad}\\ \underline{1800000} \\ \end{array}\begin{array}{l}\\ \text { Share capital}\\ \text { General Reserve}\\ \text { Retained earnings}\\ \text { Accounts payable}\\ \text { Income tax payable}\\\\\end{array}\begin{array}{r}\underline{S \$} \\400000 \\200000 \\1000000 \\170000 \\\underline{30000} \\\underline{1800000} \end{array}\end{array}$
-Relevant exchange rates are as follows.
$\begin{array}{llll}&\underline{ \text {A\$ }} &&\underline{ \text { S\$ }} \\\text { 1. July 20X0 } & 1.00 & & 1.15 \\\text { 30 June 20X1 } & 1.00 & = & 1.25 \\\text { Average 20X0-X1 } & 1.00 & = & 1.22\end{array}$
If the local currency of Sing Sing is Singapore dollars and the functional currency is Australian dollars, the total assets of S$1 800,000 would translate into Australian dollars as:

• A) $1 565 217.
• B) $1 488 696.
• C) $1 440 000.
• D) $1 475 410.

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Definitions:

Modus Tollens (MT)

A form of logical argument that concludes the inverse of an antecedent from the negation of its consequent in a conditional statement.

Modus Ponens (MP)

A logical reasoning pattern that asserts if a given premise is true, then the consequent logically follows; structured as "If P, then Q. P, therefore Q."

Modus Tollens (MT)

A form of logical argument where the antecedent is denied after deriving an absurdity or contradiction from its assumption, typically structured as "If P, then Q. Not Q, therefore not P."

Atomic Sentences

The simplest type of sentence that cannot be broken down into smaller sentences and still convey the intended meaning.