Question 7 (2 points)

Is conceptual framework an accounting standard? Please explain in your own words. (2 marks)

Question 7 options:

Question 8 (1 point)

On 1 July 2018, David Ltd purchased all the issued capital of Victor Ltd (Subsidiary) for $400 000 cash. At acquisition date, the equity section in the Statement of financial position of Subsidiary contained the following information:

	$000
Issued capital	210
Retained earnings	110
Total equity	320

Calculate GoodwillQuestion 8 options:

A)

$210 000

B)

$80 000

C)

$40000

D)

$110 000

Question 9 (1 point)

Wellington Ltd spent $100 000 promoting the recognition of brand name. As perAASB 138: Intangible Assets this item should be recognised as:

Question 9 options:

A)	Intangible asset and hence capitalised

B)	tangible asset and hence capitalised

C)

expense

D)	None of the above

Question 10 (1 point)

In the first year of business, Nicholas Ltd purchased land for $6 million. In the second year, a reputable, independent property valuer's report shows that the value of the land is estimated at $2 million. In the third year, the value of the land is estimated at $7 million. Nicholas Ltd uses the revaluation method. What would be the journal entry to record this revaluation in the third year?

Question 10 options:

A)	Dr Land 5m; CR Gain on revaluation 5m

B)	DR Land 5m; CR Gain on revaluation 4m; CR Revaluation surplus 1m

C)	DR Land 5m; CR Gain on revaluation 1m; CR Revaluation surplus 4m

D)	Dr Land 5m; CR Gain on revaluation 2m; CR Revaluation surplus 3m

Question 11 (1 point)

The following is an extract from a lease payment schedule for Paul Pty Limited. What is the present value of the lease liability at 30 June 2019?

Date	Lease payment	Interest expense	Present value of lease liability
1-Jul-18			17 039
30-Jun-19	4500	1704	?

Question 11 options:

A)

15 335

B)

14243

C)

11 835

D)

13 539