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Financial Reporting Questions 21–25 (page: 6)

CORRECT TEXT
XY acquired 75% of the equity shares of CD on 1 January 20X2 for $230,000.
On 1 January 20X2 CD had the following balances:



XY uses the proportionate share of net assets method to value non controlling interest at acquisition. Calculate the goodwill arising on the acquisition of CD.
Give your answer to nearest whole number.

In Country X corporate income tax is levied on profits as follows:



Which of the following describes the tax rate structure in Country X?

The accounting profit before tax of an entity was $243,200 for the year ended 31 July 20X4.

The accounting profit included disallowable income from government grants of $48,000 and disallowable expenditure of $25,600 on entertaining expenses. The entity also paid a $40,000 dividend to shareholders. The tax rates for the country were as follows:



Calculate the tax the entity is due to pay for the year ending 31 July 20X4.

Which of the following is an example of a progressive tax?

From the list below identify the item that appears in the statement of financial position.