Question 18

B Ltd has two cash generating units. CGU A had a carrying amount of $2700 and a value in use of $3400. CGU B has a carrying amount of $2900 and a value in use of $3450. The carrying amount of the head office asses is $2400. CGU A and B utilise the head office services in the ration of 7:3. The portion of head office asset allocated to the CGU A is:

$980

$700

$720

$1680

Question 21

B Ltd has two cash generating units. CGU A had a carrying amount of $2700 and a value in use of $3400. CGU B has a carrying amount of $2900 and a value in use of $3450. The carrying amount of the head office asses is $2400. CGU A and B utilise the head office services in the ration of 7:3. The impairment loss for CGU B is:

$170

$980

$720

$550

Question 26

H Ltd acquired all the identifiable assets and liabilities of F Ltd at fair value. As part of consideration, H Ltd is to provide sufficient cash to allow F Ltd to repay $8500 outstanding debts and liquidation expenses of $800. H Ltd will also pay 25 000 ordinary sharesin H Ltd at $1.75 each. Cost of issuing these shares is $550. Acqusition related expenses are $350. The purchase consideration paid by H Ltd is:

a.

$53,400

b.

$53,950

c.

$53,600

d.

$53,050