BCD's financial statements for the year ending 30 November 20X3 include the following:

Inventory at 30 November 20X2 was $220,000.
What is BCD's average inventory holding period for the year ended 30 November 20X3?

• A.42 days
• B.37 days
• C.35 days
• D.45 days

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When calculating the gam chargeable to tax on the disposal of a building, which of the following would NOT be an allowable deduction?

• A.Legal fees arising on the original purchase of the building.
• B.Costs of constructing an extension to the building.
• C.Interest on a loan that was used to assist with its original purchase.
• D.Estate agent's fee payable on its sale.

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GH's tax liability at 30 June 20X3 in respect of the tax charge on the profits for the year ended 30 June 20X3 is $876,000.
There was an over provision of $105,000 that related to the tax charge on the profits for the year ending 30 June 20X2.
What amount should be shown in GH's statement of profit or loss for the year ending 30 June 20X3?
Give your answer to the nearest $.

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Country X charges corporate income tax at the rate of 20% on all income irrespective of whether it is paid out as a dividend. Country Y charges corporate income tax at the rate of 25% on all income.
An entity, AA, which is resident in Country X pays a dividend of $100,000 to another entity, BB, which is resident in Country Y.
Countries X and Y have a double taxation treaty which adopts the exemption method in respect of this type of transaction.
What is BB's liability to tax in Country Y in respect of the dividend income received?

• A.No tax will be payable.
• B.Tax will be payable at 25%.
• C.Tax will be payable at 25% less a credit given for the 20% already paid by AA in Country X.
• D.Tax will be payable at 20%.

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The statement of profit or loss for PQ, ST and AB for the year ended 31 December 20X0 are shown below:

1. PQ acquired 80% of its subsidiary, ST, on 1 January 20X0 and 40% of its associate, AB, on 1 September
20X0.
2. Since acquistion PQ has sold goods to ST and AB for $20,000 and $30,000 respectively. At the year end both ST and AB have 50% of these goods remaining in inventory. PQ uses a mark-up of 20% on all of its sales.
3. Since acquisition the goodwill in respect of ST has been impaired by $8,000 and the investment in AB has been impaired by $2,000.
4. PQ uses the fair value method for non-controlling interest at acquisition.
Calculate the amount that will be shown as the share of profit of associate in PQ's consolidated statement of profit or loss for the year ended 31 December 20X0.

• A.$2,000
• B.$10,000
• C.$3,200
• D.$4,000

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