The Following Information Relates to Questions
on 1 January

question 2

Multiple Choice

The following information relates to questions
On 1 January 20X3, Claudia Ltd, an Australian company, acquired 80% of the shares of Saskia Ltd, a New Zealand company, for A$2 498 000. At that date the share capital of Saskia was NZ$2 million and the retained earnings were NZ$1 440 000.

All the assets and liabilities of Saskia were recorded at fair value except for land, for which the fair value was NZ$200 000 higher than the carrying amount and equipment, for which the fair value was NZ$80 000 higher than the carrying amount. The undervalued equipment had a further 4-year life. The tax rate in New Zealand is 25%.

Exchange rates are as follows:
$\begin{array}{ll}1 \text { January 20X3 } & \mathrm{A} \$ 1.00=\mathrm{NZ} \$ 1.20 \\31 \text { December 20X3 } & \mathrm{A} \$ 1.00=\mathrm{NZ} \$ 1.40 \\\text { Average for the year } & \mathrm{A} \$ 1.00=\mathrm{NZ} \$ 1.30\end{array}$
-The goodwill arising on Claudia's acquisition of Saskia is:

• A) NZ$77 600;
• B) NZ$88 800;
• C) A$93 120;
• D) A$422 000.

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Definitions:

Microorganism

A microscopic organism, such as a bacteria, virus, or fungus, that can be found in a wide range of environments.

DNA Segment

A specific sequence of DNA within a chromosome characterized by a particular function or genetic information.

Reverse Transcription

The process by which the information contained in RNA molecules is transcribed into DNA molecules.

DNA Ligase

An agent that supports the unification of DNA strands by enabling the production of a phosphodiester bond.