1 Art revalued some of its plant by £15,000. There was no change to the asset life. The plant originally cost £50,000 and was halfway through its 10-year life before the revaluation. Calculate the revised depreciation charge. A) £8,000 £5,000 £4,000 None of these 2 Red acquired Blue when the latter company's net assets were £120,000. Some of the target's plant had been revalued. If Red paid £148,000 and minority interests (20%) at that time were £32,000, calculate the plant revaluation. A) ABCD £12,000 £18,000 £40,000 D) None of these 3 Old's pretax profit was £66,000 this year. Current Liabilities were £28,000 and the company has no debt. If net assets were £440,000, Return on Capital Employed will be nearest A) 06% B) 10% C) 15% D) None of these 4 Leo's plant had cost £52,000 when new and is halfway through its 10-year life when it is damaged. Post-impairment, remaining life will be 4 years with a value-in-use of £24,000. Calculate net book value one year after the damage. ABOD 12,500 18,000 40,000 None of these
1 Art revalued some of its plant by £15,000. There was no change to the asset life. The plant originally cost £50,000 and was halfway through its 10-year life before the revaluation. Calculate the revised depreciation charge. A) £8,000 £5,000 £4,000 None of these 2 Red acquired Blue when the latter company's net assets were £120,000. Some of the target's plant had been revalued. If Red paid £148,000 and minority interests (20%) at that time were £32,000, calculate the plant revaluation. A) ABCD £12,000 £18,000 £40,000 D) None of these 3 Old's pretax profit was £66,000 this year. Current Liabilities were £28,000 and the company has no debt. If net assets were £440,000, Return on Capital Employed will be nearest A) 06% B) 10% C) 15% D) None of these 4 Leo's plant had cost £52,000 when new and is halfway through its 10-year life when it is damaged. Post-impairment, remaining life will be 4 years with a value-in-use of £24,000. Calculate net book value one year after the damage. ABOD 12,500 18,000 40,000 None of these
Chapter14: Property Transactions: Capital Gains And Losses, § 1231, And Recapture Provisions
Section: Chapter Questions
Problem 32CE
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Transcribed Image Text:1
Art revalued some of its plant by £15,000. There was no change to the asset life. The
plant originally cost £50,000 and was halfway through its 10-year life before the
revaluation. Calculate the revised depreciation charge.
A) £8,000
£5,000
£4,000
None of these
2
Red acquired Blue when the latter company's net assets were £120,000. Some of the
target's plant had been revalued. If Red paid £148,000 and minority interests (20%) at
that time were £32,000, calculate the plant revaluation.
A)
ABCD
£12,000
£18,000
£40,000
D) None of these
3
Old's pretax profit was £66,000 this year. Current Liabilities were £28,000 and the company
has no debt. If net assets were £440,000, Return on Capital Employed will be nearest
A) 06%
B) 10%
C) 15%
D) None of these
4
Leo's plant had cost £52,000 when new and is halfway through its 10-year life when it is
damaged. Post-impairment, remaining life will be 4 years with a value-in-use of £24,000.
Calculate net book value one year after the damage.
ABOD
12,500
18,000
40,000
None of these
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