b. Kim and Liang incorporated Musang King Sdn Bhd on 1.4.2016 to acquire durian plantations in Gua Musang, Kelantan. The company acquired several pieces of agricultural land at RM2 million and embarks on durian plantation. The land acquisition is financed by share capital as follows: Kim (30%) Liang (70%) On 1.1.2020, Kim wishes to dispose the shares to Pink at a consideration of RM1.8 million, based om market value of the durian plantation of RM 6 million. Required: i) RM'000 600 1,400 2,000 ii) Advise the tax implication on the disposal of shares to Pink. (Include computation of disposal of RPC shares that subject to RPGT) Advise Pink on the RPGT responsibility towards the acquisition of shares.

b. Kim and Liang incorporated Musang King Sdn Bhd on 1.4.2016 to acquire durian plantations in Gua Musang, Kelantan. The company acquired several pieces of agricultural land at RM2 million and embarks on durian plantation. The land acquisition is financed by share capital as follows: Kim (30%) Liang (70%) On 1.1.2020, Kim wishes to dispose the shares to Pink at a consideration of RM1.8 million, based om market value of the durian plantation of RM 6 million. Required: i) RM'000 600 1,400 2,000 ii) Advise the tax implication on the disposal of shares to Pink. (Include computation of disposal of RPC shares that subject to RPGT) Advise Pink on the RPGT responsibility towards the acquisition of shares.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On 1 January 2017, Al Yousef Group acquired 30% of the outstanding voting shares of Saleh Enterprises for OMR 2,000,000 in cash, a price that was equal to 30% of Saleh's net assets. The investment gave Al Yousef significant influence over Saleh. During the year ending December 31, 2017, Saleh had Net Income of OMR 200,000 and paid dividends of OMR 40,000. For the year ending December 31, 2018, Saleh had a net income of OMR 250,000, and paid dividends of OMR 50,000. For the year ending December 31, 2019, Saleh's business started to have some operational issues that they had a Net Loss of OMR 25,000, however they still managed to pay dividends of OMR 10,000. For the year ending December 31, 2020, because of COVID-19, Saleh had a Net Loss of OMR 50,000 and no dividends have been paid for 2020. Please answer the following questions pertaining to Al Yousef Company: Questions No. 32, 33 and 34 What will be the journal entry to record their share in Saleh's net loss on December 31, 2019? a.…
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On 1 July 2015, Ausra purchased 75% of Danute by way of a share exchange of two new shares in Ausra for every three purchased in Danute plus an immediate cash payment of $11,160,000. Ausra’s share price at the acquisition date was $4.70. Only the cash element of the consideration has been recorded. On the same date, Ausra purchased $5,000,000 of Danute’s 10% loan notes at par. The summarised financial statements of both companies are as follows: Statement of Comprehensive Income for the year ended 31 December 2015 Ausra Danute $ 000 $ 000 Revenue 120,000 48,000 Cost of sales (84,000) (40,000) Gross profit 36,000 8,000 Operating expenses (11,900) (400) Profit from operations 24,100 7,600 Other income 300 - Finance costs - (1,200) Profit before tax 24,400 6,400 Income tax expense (6,000) (1,200) Profit for the year 18,400 5,200 Statements of Financial Position at 31…
• Monageng Limited will settle for the 75% of the ordinary shares by paying cash of R200 000 in addition to issuing 100000 of its own 10% preference shares to the owners of the 75% ordinary shares on 30 September 2015. The price ofthe10% preference shares on 30 September 2015 was R2.50 each.• Monageng Limited will only be able to appoint its directors to the board of Selongo Limited on 1 August 2015 after theyear end date of Selongo Limited which is on 31 July 2015. All the ordinary shares of Selongo Limited are entitled to voteat the company’s AGM but preference shares are not entitled to vote.Which of the following statements are true?(i) Monageng Limited is the acquiree(ii) Selongo Limited is the acquiree(iii) Monageng Limited is the acquirer(iv) Selongo Limited is the acquirerSelect one:a.(i) and (iv) onlyb.(i), (ii) and (iii) onlyc.(ii) and (iii) onlyd.(iii) and (iv) only
On 1 July 2015, Ausra purchased 75% of Danute by way of a share exchange of two new shares in Ausra for every three purchased in Danute plus an immediate cash payment of $1,160,000. Ausra's share price at the acquisition date was $4.70. Only the cash element of the consideration has been recorded. On the same date, Ausra purchased $5,000,000 of Danute's 10% loan notes at par. The summarised fimancial statements of both companies are as follows: r Snip Statement of Comprehensive Income for the year ended 31 December 2015 Ausra S 00 120,000 Danute S 000 48,000 Revenue Costof sales Gross profit Operating expenses Profit from operations Other income (84,000) 36,000 (11,900) 24,100 (40,000) 8,000 (400) 7,600 300 Fimance costs (1,200) 6,400 Profit before tax 24,400 Income tax expense Profit for the year (6,000) 18,400 (1,200) 5,200 Statements of Financial Position at 31 December 2015 Ausra Danute S 000 S 000 Non-current assets: Property, plant and equipment 38,640 16,000 Investments 16,280…
On 1 July 2015, Monageng Limited concluded an agreement to purchase 75% of the ordinary shares in Selongo Limited. The terms of the purchase agreement include, among other things, the following: • Monageng Limited will settle for the 75% of the ordinary shares by paying cash of R200 000 in addition to issuing 100 000 of its own 10% preference shares to the owners of the 75% ordinary shares on 30 September 2015. The price of the10% preference shares on 30 September 2015 was R2.50 each. • Monageng Limited will only be able to appoint its directors to the board of Selongo Limited on 1 August 2015 after the year end date of Selongo Limited which is on 31 July 2015. All the ordinary shares of Selongo Limited are entitled to vote at the company's AGM but preference shares are not entitled to vote. What is the value of the purchase consideration? Select one: O a. R200 000 O b. R300 000 O . R250 000 O d. R450 000
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