On 1 January 2021, Brisbane Ltd Acquired All the Issued

question 28

Multiple Choice

On 1 January 2021, Brisbane Ltd acquired all the issued shares in Sydney Ltd. At that date, the plant of Sydney Ltd had a fair value of $20 000 more than its carrying amount and an estimated useful life of 5 years. Sydney Ltd depreciates the plant on a straight-line basis. The plant was still in the business at 30 June 2022. The business combination valuation entries in relation to the plant as at 30 June 2022 will include:
I. Adjustments to the current depreciation expense
II. Adjustments to retained earnings (opening balance)
III. Transfers from business combination valuation reserve to retained earnings
IV. Adjustments to the plant account to recognise the fair value adjustment at acquisition date

• A) I and IV only.
• B) II and III only.
• C) I, II and IV only.
• D) I, II, III and IV.

---

Definitions:

Setting

The environment or context in which something takes place, including physical locations, cultural backgrounds, and social circumstances.

Polygraph Machine

A device used to measure and record physiological indicators such as blood pressure, pulse, respiration, and skin conductivity while a person is asked and answers a series of questions, purported to indicate truthfulness.

Lie Detector

A device or procedure that attempts to determine whether a person is telling the truth by measuring physiological responses.

Emotion Detector

A technology or tool designed to identify and classify human emotions based on various inputs such as facial expressions, voice patterns, or physiological responses.