The land has market value december

61,047
61,047

31 Aug. 2002

875,000

61,047

(transferred to P&L)

114,130 760,870


31 Aug. 2002

What is the net amount of foreign exchange gains and losses recorded in the Income
Statement for the year ended 30 June 2002? (1 mark)

69,272 75,881	6,609

in the Income Statement for the year ended 30 June 2002 if the company had not

entered into a forward exchange contract?

QUESTION 4

What is the total lease liability that would be recorded in the Balance Sheet of Burt as
at 30 June 2005. (1 mark)

Prepare the journal entries of Burt Ltd for the years ending 30 June 2004 and 2005,
assuming that Burt Ltd classifies the lease as an operating lease. (2 marks)

Income Statements and Balance Sheets for each of the entities for the June 2002 year
		On 1 July 1998, all assets and liabilities in Harry’s Balance Sheet were stated at their fair values	The present rate of company income tax is 30 per cent.					� During the year ended 30 June 1999, Harry Ltd. had declared and paid a cash dividend of $800,000 out of pre-acquisition profits.	� During the year ended 30 June 2002, Harry Ltd. declared and paid a dividend of $500,000 from post-acquisition profits.
		�	� �