n March 2021, ASX-listed company Computershare Ltd (CPU) raised $835M through a renounceable rights issue. Was Computershare undertaking direct or indi
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In March 2021, ASX-listed company Computershare Ltd (CPU) raised $835M through a renounceable rights issue.
Was Computershare undertaking direct or indirect financing? Justify your answer.
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- 28. On January 1, 2020, Walang Kayo Co. purchased investment securities for P1,500,000. The securities are classified as investment in equity securities at fair value through profit or loss. At December 31, 2016, the securities had a fair value of P2,100,000 but not yet been sold. The company also recognized a P400,000 restructuring charge during the year. The restructuring charge is composed of an impairment write down of manufacturing facility. Tax rules do not allow a deduction for the write down unless the facility is sold. The facility was not sold by the end of the year. After including the unrealized gain on the equity investment @FVPL and the restructuring charge, the accounting income before tax for the year was P5,000,000. The income tax rate for the current and future years is 30%. What is Walang Kayo’s current tax expense? A. P1,440,000 B. P1,500,000 C. P1,560,000 D. P1,920,000Under the memorandum of incorporation of Greenfield Investments Ltd, the directors had the power to borrow up to R5-million, without the consent of the general meeting. The directors themselves lend R10-million to the company, without such consent, and took debentures. Is the company liable for the R10-million?Johnstone Company is facing several decisions regarding investing and financing activities. Address each decision independently. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)1. On June 30, 2021, the Johnstone Company purchased equipment from Genovese Corp. Johnstone agreed to pay Genovese $26,000 on the purchase date and the balance in five annual installments of $9,000 on each June 30 beginning June 30, 2022. Assuming that an interest rate of 11% properly reflects the time value of money in this situation, at what amount should Johnstone value the equipment?
- 3. On January 11, 2022, The Hughes Company applied for a tradename. Legal costs associated with the application were P20,000. In January 2023, the company incurred P8,000 of legal fees in a successful defense of its tradename. The tradename was not impaired in 2022 and 2023. Required Compute the ending carrying value of the tradename for 2022 and 2023. Should the company amortize the tradename?Qarabag Ltd enters into a contract to pay $20 million to acquire fittings. Under which of the following situations would Qarabag Ltd recognise a liability? Qarabag Ltd has not received the fittings but has paid for it. O Until Qarabag pays for the fittings, regardless of whether it has received the fittings. Qarabag Ltd has received the fittings and has paid for it. O Qarabag Ltd has not received the fittings and has not paid for it. O Qarabag Ltd has received the fittings but has not paid for it. Question 5 Coloma Ltd owns 80% of the shares in Shirak Ltd. In the context of preparing a General Purpose Financial Report, Shirak Ltd's relationship to Coloma Ltd is best described as that of a: O Shareholder O Parent Investment O Non-controlling interest O SubsidiaryOn January 1, 2021, DONNER Corporation purchased investment securities for ₱1,200,000. The securities are classified as trading. By December 31, 2021, the securities had a fair value of ₱1,680,000 but had not yet been sold. The company recognized a ₱320,000 restructuring charge during the year. The restructuring charge is composed of an impairment write-down on a manufacturing facility. Tax rules do not allow a deduction for the write-down unless the facility is actually sold. The facility was not sold by the end of the year. Excluding the trading securities and the restructuring the charge, income before taxes for the year was ₱4,000,000. The income tax rate for the current year and future years is 30%. What is DONNER's current tax expense?
- The Vary Company has total assets with a book value of $3,000,000 and a fair value of $4,000,000. A potential primary beneficiary company has guaranteed the debt of the Vary Company and will receive a share of income of the Vary Company based on contractual terms. The primary beneficiary will also have decision power. a. Will the primary beneficiary company record an investment in the equity of the Vary Company? b. Will the Vary Company need to be consolidated. If it is to be consolidated, what adjustments would be needed in the consolidation process?GadubhaiOn December 31, 2020, Petra Company invests $40,000 in Valery, a variable interest entity. In contractual agreements completed on that date, Petra established itself as the primary beneficiary of Valery. Previously, Petra had no equity interest in Valery. Immediately after Petra's investment, Valery presents the following balance sheet: Cash Marketing software Computer equipment Total assets 40,000 160,000 60,000 $ 260,000 $ Required A Long-term debt Noncontrolling interest Petra equity interest Total liabilities and equity Each of the amounts represents an assessed fair value at December 31, 2020, except for the marketing software. The December 31 business fair value of Valery is assessed at $160,000. Required B a. If the carrying amount of the marketing software was undervalued by $45,000, what amounts for Valery would appear in Petra's December 31, 2020, consolidated financial statements? Complete this question by entering your answers in the tabs below. b. If the carrying amount of…
