ZuoTi.Pro
Question

QUESTION 7 Lady Ltd owns 25% of Gaga Ltd. Gaga’s profit after tax for the year ended 30 June 2017 is $50,000. The tax rate is 30%. During the year ended 30 June 2017, Lady sold $10,000 worth of invent...

QUESTION 7 Lady Ltd owns 25% of Gaga Ltd. Gaga’s profit after tax for the year ended 30 June 2017 is $50,000. The tax rate is 30%. During the year ended 30 June 2017, Lady sold $10,000 worth of inventory to Gaga. These items had previously cost Lady $7,000. All the items remain unsold by Gaga at 30 June 2017. Lady’s share of Gaga’s profit for the year ended 30 June 2017 is: $11,975. $11,750. $8,225. $9,275.

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Lady’s share of Gaga’s profit for the year ended 30 June 2017:-

[Gaga’s Profit after Tax for year ended 30 June 2017 – Lady’s Profit after Tax in Inventory sold to Gaga which remain unsold] * Lady Ltd share

[$50000 – ($10000 - $7000)*0.7] * 25%

[$50000 - $2100] * 25%

= $11975

0 0
Add a comment
Know the answer?
Add Answer to:
QUESTION 7 Lady Ltd owns 25% of Gaga Ltd. Gaga’s profit after tax for the year ended 30 June 2017 is $50,000. The tax rate is 30%. During the year ended 30 June 2017, Lady sold $10,000 worth of invent...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • QUESTION 7 Lady Ltd owns 25% of Gaga Ltd. Gaga’s profit after tax for the year...

    QUESTION 7 Lady Ltd owns 25% of Gaga Ltd. Gaga’s profit after tax for the year ended 30 June 2017 is $50,000. The tax rate is 30%. During the year ended 30 June 2017, Lady sold $10,000 worth of inventory to Gaga. These items had previously cost Lady $7,000. All the items remain unsold by Gaga at 30 June 2017. Lady’s share of Gaga’s profit for the year ended 30 June 2017 is: $11,975. $11,750. $8,225. $9,275.

  • Explain in detail, using the relevant journal entries, how the realisation of profit affects the calculation of profit and retained earnings for the NCI for the year ended 30 June 2018 using the follo...

    Explain in detail, using the relevant journal entries, how the realisation of profit affects the calculation of profit and retained earnings for the NCI for the year ended 30 June 2018 using the following information. Rose Ltd owns 90% of the share capital of Petal Ltd. The income tax rate is 30%. In January 2017, Petal Ltd sells inventory to Rose Ltd for $25 000 cash. This inventory had previously cost Petal Ltd $15 000, and remains unsold by Rose...

  • During an audit of the inventory records of Winthrop Ltd for the year ended June 30,...

    During an audit of the inventory records of Winthrop Ltd for the year ended June 30, 2019, the auditor discovered that the ending inventory balance was overvalued by $180,000. On further investigation, it was discovered that the ending inventory for the previous year was correctly counted and valued, but that the inventory balance as at June 30, 2017, was undervalued by $500,000. Spurred on by the concern for errors undetected in previous periods, a thorough investigation was carried out as...

  • Katie Ltd had an accounting profit before tax for the year ended 30 June 2020 of...

    Katie Ltd had an accounting profit before tax for the year ended 30 June 2020 of $20,000. Included in the profit were the following items of income and expense: government grant $15,000, warranty expense $34,000 and insurance expense $17,000. Katie Ltd calculated the following: warranty paid $48,000 and insurance paid $30,000. The company tax rate is 30%. For the year ended 30 June 2020, the current tax journal entry is: Select one: a. DR Deferred tax asset 6,600 CR Income...

  • For the year ending 30 June 2019, Sandon Ltd reports net profit after tax of $2000...

    For the year ending 30 June 2019, Sandon Ltd reports net profit after tax of $2000 000. At the beginning of the year, Sandon Ltd had 1600 000 fully paid ordinary shares. It also had 200 000 $1.00, 20 per cent, cumulative preference shares outstanding. The preference shares were classified as equity. On 1 September 2018 the company issued another 400 000 fully paid ordinary shares by way of a rights issue. The right provided an additional share for each...

  • For the year ending 30 June 2016, XYZ Ltd earns a profit after tax of $1.05...

    For the year ending 30 June 2016, XYZ Ltd earns a profit after tax of $1.05 million. Dividends on 400 000 convertible, cumulative preference shares amount to $200 000. The preference dividends are not treated as expenses in the accounts of Lennox Ltd (the preference shares have been disclosed as equity in the statement of financial position). As at 1 July 2015 there were 500 000 fully paid ordinary shares. There were no additional share issues during the year. As...

  • ABC Ltd has provided the following information: Income Statement for the year ended 30 June 2018...

    ABC Ltd has provided the following information: Income Statement for the year ended 30 June 2018 $000 Revenue 25460 Cost of Sales 9810 Gross Profit 15650 Depreciation 7860 Other Expenses 1080 Gain on disposal of Non Current assets 150 6860 Operating Profit Finance Charges 2250 Profit before Tax 4610 Taxation 1030 Profit for the year 3580 Statement of Changes in Equity for the year ended 30 June 2018 Retained Earnings 01.07.17 8210 Profit for the year 3580 11790 Dividends paid...

  • PSB11.10 Below is the information relating to Simic and Nikolic Ltd for the year ended 30 June 2016. Prepare a sta...

    PSB11.10 Below is the information relating to Simic and Nikolic Ltd for the year ended 30 June 2016. Prepare a statement of cash flows, including asset revaluations, bones share ise and transfer to resernes, using direct and indinect methods SIMIC AND NIKOLIC LTD Statement of financial position as at 30 June 2016 (LO3) 2016 2015 $000 $000 Assets Current assets 3150 1240 Cash 1 220 1 100 Accounts receivable Allowance for doubtful debts (60) 1520 60 (50) 1300 Inventory Prepaid...

  • Simon is an Australian resident taxpayer who has undertaken the following transactions during the tax year ending 30 June 2019. Item number Transaction Particulars 1 Sold car Purchased...

    Simon is an Australian resident taxpayer who has undertaken the following transactions during the tax year ending 30 June 2019. Item number Transaction Particulars 1 Sold car Purchased on 1 March 2010 for $30,000. Sold on 20 April 2019 for $12,000 2 Sold painting Purchased on 1 January 2008 for $600. Sold on 3 February 2019 for $6,000 3 Shares sold in C Pty Ltd Purchased on 14 April 2013 for $10,000 and sold on 15 May 2019 for $20,000....

  • Booster Company is preparing its financial statements for the year ended June 30, 2018. The financial...

    Booster Company is preparing its financial statements for the year ended June 30, 2018. The financial statements are complete except for the statement of cash flows. You have been asked to prepare a statement of cash flows for the year ended June 30, 2017. Booster Company A1 Company Facts: PLEASE FILL IN THE BELOW CHARTS FOR THE ASSIGNMENT:------------------------------------------------------------------ Account Balances June 30, 2017 June 30, 2018 Debits $ $ L 361,700 100,000 11,700 1,500 168,750 45.000 Cash Accounts Receivable Marketable...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT