QUESTION: 21

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.

$5000

Answer(s): A

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QUESTION: 22

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

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

Proportional
Regressive
Progressive
Competent

Answer(s): C

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QUESTION: 23

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.

$47,840
$39,174
$57,546
$44,160

Answer(s): A

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QUESTION: 24

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

Personal income tax of 10% on earnings up to $10,000, then at 15% over $10,001
Corporate income tax of 20% on earnings up to $100,000, then at 10% over $100,000
Corporate income tax of 20% on all earnings
Personal income tax of 10% and corporate income tax of 20%

Answer(s): A

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QUESTION: 24

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