Accounting Assignment: Deferred Tax & Business Combinations

This accounting assignment solution addresses two main questions. Question 1 focuses on deferred tax calculations for Baby Shark Ltd., including analysis of temporary differences, deferred tax assets and liabilities, and journal entries. The solution provides detailed workings for each component, such as accounting fees, depreciation, and insurance claims, along with relevant journal entries. Question 2 delves into business combinations, specifically the acquisition of Smuckos Ltd. by Scruffy, analyzing fair value of net assets, consideration transferred, goodwill calculation, and journal entries to record the acquisition. Question 3 covers the acquisition of Fish Ltd. by Cat Ltd., including the calculation of goodwill or gain on bargain purchase and detailed journal entries to record the acquisition and subsequent transactions related to asset revaluations, intercompany transactions, and consolidation adjustments. The solution also includes a consolidation worksheet at the end.