The directors of Holloways Ltd declared a 5-cent dividend on ordinary shares on 17 July 2018. It amounted to $160 000. (LO3)

July 2018. Holloways has $450 000 deferred tax liabilities recognised in accordance

 

with AASB 112 ‘Income Taxes’.

(b) Holloways Ltd purchased equipment from Machans Ltd on 25 June 2018 for $50 000.

A routine check by the external auditor on 13 August 2018 revealed that the

equipment had been incorrectly recorded at $23 000 due to a computer system error. (c) At a directors’ meeting held in May 2018 it was decided that, in early August 2018,

the Queensland operations of the company would be closed. The estimated costs of

closure ($1.8 million) were recorded as a provision. On 25 August 2018, you were

told that the actual costs incurred in closing down the division were $2.3 million.

(d) On 18 September 2018, Holloways Ltd commenced legal action against a supplier

for failure to perform under the terms of the supply contract. The damages sought

are $780 000.

(e) The directors of Holloways Ltd declared a 5-cent dividend on ordinary shares on

17 July 2018. It amounted to $160 000. (LO3)

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