Financial Accounting (ACC2100)

Provide detailed answers to the following questions:
List and explain two reasons why home bias is so common in Australian portfolios.

make a general ledger and subsidiary ledger of PT DIAMOND COLD STORAGE 2022

identify which one direct cist and indirect cost of this cost :

1. subscription to personal tax-law updates publication
2. ink supplies for tax department photocopy machine
3. portion of total rent for tax department office space
4. wages for tax department administrative assisstant
5. tax partners salary
6. charges for long-distance call to mr cross about personal tax return question
7. tax partner lunch with mr criss (the tax partner haslunch with each client at least once per year)

What is the net fair value of plants, patents, and inventories in this case: 

On the 1st of July 2022, Savannah Inc. underwent an acquisition process in which they acquired all the issued shares of Amelia Inc. The total consideration for this acquisition included $30,000 in cash and 20,000 shares in Savannah Ltd, valued at $3 per share on the acquisition date. At the time of this acquisition, the equity structure of Amelia Inc. was as follows: • Share Capital: Amelia Inc. had a total share capital of $66,000. • Retained Earnings: Amelia Inc. had retained earnings amounting to $6,000. As of 1 July 2022, all the identifiable assets and liabilities of Amelia Inc. were recorded at amounts equal to their fair values, with a few exceptions: Carrying amount Fair value 

Plant (cost $150  000) $ 120  000 / $ 123  000 

Patents 90  000 / 105  000 

Inventories 18  000 / 22  500.

A or B

A) 

Fair value of 

Plant $123,000

Patents $ 105,000

Inventories $22,500

FVINA = 123,000 + 105,000 + 22,5000 = 250,500 + 72,000 = 322,500

B) 

Fair value of 

Plant $123,000*70% = 86,100

Patents $ 105,000 *70% = 73,500

Inventories $22,500 *70% = 15,750

FVINA =  86,100 + 73,500 + 15,750 + 72,000 = $247,350

As of 1 July 2022, all the identifiable assets and liabilities of Amelia Inc. were recorded at amounts equal to their fair values, with a few exceptions: 
Plant (cost $150  000) 
Carrying amount: $ 120  000
Fair value: $ 123  000 
Patents
Carrying amount: $ 90,000
Fair value: $ 105,000
Inventories
Carrying amount: $ 18,000
Fair value: $ 22,500

The plant identified on the acquisition date (1 July 2022) was expected to have a 5-year lifespan starting from that date. On August 18, 2022, the patents identified at the time of acquisition were sold for $120,000 to an external entity, ABC Corporation. The patents had indefinite useful life and had not been amortised. All inventories identified during the acquisition process were subsequently sold to another company, XYZ Enterprise, by 30 June 2023. • On 1 January 2023, Savannah Inc. sold inventories to Amelia Inc. for $1,200. The cost of these inventories was $600. However, as of 30 June 2023, Amelia Inc. had not yet sold these inventories and continued to hold them in their inventory. • On June 1, 2023, Amelia Inc. purchased a plant from an external company, Darwin Inc., for a cost of $14,000. On the same date, Amelia Inc. sold this plant to Savannah Inc. for $15,200. The plant is subject to depreciation at an annual rate of 10%.

Prepare consolidation worksheet entries as at 30 June 2023.

On 1 January 2023, Savannah Inc. sold inventories to Amelia Inc. for $1,200. The cost of these inventories was $600. However, as of 30 June 2023, Amelia Inc. had not yet sold these inventories and continued to hold them in their inventory. Prepare consolidation worksheet entries as at 30 June 2023.

On 1 January 2023, Savannah Inc. sold inventories to Amelia Inc. for $1,200. The cost of these inventories was $600. However, as of 30 June 2023, Amelia Inc. had not yet sold these inventories and continued to hold them in their inventory. As of 1 July 2023, Amelia Inc. still held inventories sold to it by Savannah Inc. in the previous year. However, none of these inventories were on hand at 30 June 2024.  Prepare consolidation worksheet entries as at 30 June 2024.