Peter Russell proposes to sell his business to Tim Jones for $800,000. The business assets to be acquired include:

• trading stock $70,000
• debtors $40,000
• plant and equipment $150,000, and
• premises $400,000.

The balance, $140,000, represents goodwill.

It is proposed that the transfer of ownership will occur on 15 June 2020.

After the sale Peter Russell intends to retire.

Tim Jones is married with two teenage children, aged 14 and 17. Jones’ wife will work part-time in the business. Jones has $600,000 in cash and a house valued at $200,000, on which there is a $100,000 mortgage.

Required:        Advise Peter Russel as to the tax planning considerations involved in the disposal of the business. Please consider three or four issues, including any small business relief effective from 21 September 1999.

Please support your answer with any relevant case law or legislation.

In 1999 when Carlos was appointed CEO/COO for Nissan in Japan, he had to show results to the shareholders of Nissan and Renault. What do you think are the key performance criteria that Carlos must achieve as the CEO/COO for Nissan in 1999? Describe the THREE key performance criteria. Your answer must be relevant with the context.

• in your own words please write an essay on a real case of actual fraud affecting a company that has occurred between 2010 and 2020 where you should mention The name and location of the company that was the victim of the fraud must be clearly identified and A clear explanation of what the fraud was and how it affected the company and The financial cost or estimated financial cost to the company of the fraud And lastly what actions the company took in response to the fraud

The owner of a U.S. company that produces sound systems for home entertainment theaters is considering the establishment of an Australian-based company to produce and sell the systems there. He is being told that the production costs would be one third the cost of producing them in the United States. Considering the economic factors, is this a good strategy that you could recommend to the owner?

Chiquita Banana, Blood Banana: Should the company have been punished by the U.S. government for what they did in Columbia? Should they take some responsibility for what happened to the people at the hands of the militia? If so, why, or why not?

Mining Corp acquired a parcel of land for $4,000,000. It was estimated that the property contained 300,000 tons of mineral reserves. Federal law requires that mined properties be restored to a natural condition after mining is completed. It is expected that restoration costs will total $400,000 and that the restored land could be resold for $200,000. During the year, the company extracted 25,000 tons (of which 15,000 tons were sold) of mineral reserves from the property.

1.try to record the purchase (show the cost allocation).

2.What is the depletion amount per ton related to the mineral reserves acquired (round to 2 decimal points)?

3.What is Mining Corp’s cost of goods sold ($ amount) for the year?

4.Prepare the journal entry(s) related to the extraction and sale.

Identify whether each of the following would or would not be recorded as an intangible asset in the financial statement of Hummings as at the end of the reporting period of 30 June 2016 according to AASB 138 intangible assets.

Hummings has acquired copyrights for $240,000, The copyright (intangible)has a useful life of 50 years and over this time period is expected to generate future economic benefits well in excess of its cost of purchases.

Hummings spent $600,000 over the past 5 years on the design and promotion of its brad. It is expected that such expenditure will provide significant economic benefits well in excess of the costs of promoting the brand.

On 1 July 2015 Hummings acquired another company (XYZ Ltd). Goodwill of $35,000 has been recognized on the purchase.

Company Alpha ltd has a market value of N$6 billion and an issued share capital of 60 million shares. Company Beta ltd, a company in the same industry as Company Alpha, has an issued share capital of 20 million shares and a market value of N$1 billion. Company Alpha wishes to take over company Beta, and believes that the combined company value will be N$8 billion. Company Beta has agreed to a takeover value of N$1, 5 billion.

Required:

Discuss the effect (s) the takeover of company Beta will have on the existing shareholders of company Alpha, if company Beta is acquired by:

a) An issue of new shares to existing shareholders;

b) An issue of shares to new shareholders;

c) Borrowing; or

d) A share exchange.

A financial institution has entered into a 10-year currency swap with company Y. Under the terms of the swap, the financial institution receives interest at 3% per annum in Swiss francs and pays interest at 8% per annum in U.S. dollars. Interest payments are exchanged once a year. The principal amounts are 7 million dollars and 10 million francs. Suppose that company Y declares bankruptcy at the end of year 6, when the exchange rate is $0.80 per franc. What is the cost to the financial institution? Assume that, at the end of year 6, the interest rate is 3% per annum in Swiss francs and 8% per annum in U.S. dollars for all maturities. All interest rates are quoted with annual compounding.

Solo Co. Ltd. located in Mexico City is a wholly owned subsidiary of Partner Inc., a U.S. company. At the beginning of the year, Solo’s condensed balance sheet was reported in Mexican pesos (MXP) as follows:

During the year, the company earned income of MXP250,000 and on November 1 declared dividends of MXP135,000. The Mexican peso is the functional currency. Relevant exchange rates between the peso and the U.S. dollar follow:

Required:
a. Prepare a proof of the translation adjustment, assuming that the beginning credit balance of the accumulated other comprehensive income—translation adjustment account was $3,230.