30th September 20X1, the following balances existed in the records of Lam: Plant and equipment - cost: $860,000 Accumulated depreciation: $397,000 During the year ended 30th September 20X2, plant with a written down value of $37,000 was sold for $49,000. The plant had originally cost $80,000. Plant purchased during the year cost $180,000. It is the company’s policy to charge a full year’s depreciation in the year of acquisition of an asset and none in the year of sale, using a rate of 10% on the straight line basis. What net amount should appear in Lam’s statement of financial position at 30th September 20X2 for plant and equipment? a) $563,000 b) $467,000 c) $510,000 d) $606,000

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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At 30th September 20X1, the following balances existed in the records of Lam:
Plant and equipment - cost: $860,000
Accumulated depreciation: $397,000
During the year ended 30th September 20X2, plant with a written down value of $37,000 was sold for $49,000. The plant had originally cost $80,000. Plant purchased
during the year cost $180,000. It is the company’s policy to charge a full year’s depreciation in the year of acquisition of an asset and none in the year of sale, using a rate of 10% on the straight line basis.
What net amount should appear in Lam’s statement of financial position at 30th September 20X2 for plant and equipment?
a) $563,000
b) $467,000
c) $510,000
d) $606,000
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