The Following Information Relates to Questions
on 1 July 20X3

question 10

Multiple Choice

The following information relates to questions
On 1 July 20X3 Alpha Ltd acquired a 25% share of Beta Ltd. At that date the following assets had carrying amounts different to their fair values in Beta's books:
$$\begin{array} { | l | c | l | } \hline \text { Asset } & \begin{array} { c } \text { Carying } \\\text { amount }\end{array} & \text { Fair value } \\\hline \text { Inventory } & \text { €12 000 } & \text { €15 000 } \\\hline \text { Machinery } & \text { €24 DOQ } & \text { €30 000 } \\\hline\end{array}$$
All inventory was sold to third parties by 30 June 20X4. On 1 July 20X3, the machinery had a remaining useful life of 3 years.
The tax rate is 30%.
-The adjustment required to the investment in associate account at 30 June 20X4 in relation to the above assets is:

• A) €875
• B) €1250
• C) €3500
• D) €5000

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Definitions:

Employers

Individuals or organizations that hire and pay for the services of workers or employees.

Tasks

Specific pieces of work or activities to be completed, often as part of a larger project or duty.

Gratuitous Agent

An agent who acts on behalf of another person (the principal) without expecting or receiving any form of compensation.

Consideration

Something of value exchanged between parties in a contract, making the agreement legally binding.