A Company Records a Gain on Bargain Purchase of $40,000

question 18

Multiple Choice

A company records a gain on bargain purchase of $40,000 on the acquisition of a subsidiary.Assuming there are no other tax adjustments for any companies,if the trading profit of the group before tax was $140,000 and given a tax rate of 30% the group income tax expense would be:

• A) $42,000
• B) $54,000
• C) $30,000
• D) none of the above

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Definitions:

Job Performance

The level of effectiveness and efficiency with which an individual fulfills their job responsibilities and tasks.

Expectancy Theory

A motivational theory that proposes individuals are motivated to act in a certain way based on their expectation that their actions will lead to a desired outcome.

Goal Setting

The process of defining specific, measurable, and time-targeted objectives to be achieved by an individual, team, or organization.

Employee Behavior

The actions and conduct of individuals within an organization, influenced by factors like organizational culture, management style, and the job itself.