B Ltd leased equipment over four years making yearly payments of £15,000 in arrears. If annual interest rates are 8% and license fees to operate the equipment cost the lessor £8,000, calculate the right-of-use value in B's accounts. A) £27,910 B) £34,109 £57,682 £64,578 A ltd purchased 80% of B Ltd for £340,000 when B's net assets were £240,000, and B's property was revalued by £120,000. Calculate the goodwill arising. A) £76,000 B) £52,000 £38,000 £24,000 A Ltd's acid test ratio amounts to one third of the current ratio. Current assets were £90,000. Calculate the amount of inventory held in current assets. A) £25,000 B) £30,000 £45,000 £60,000 S Ltd purchased 45% of V Ltd when the latter company was formed. V's reserves at the end of this year equal £80,000 and S paid £120,000 to acquire V's shares. Calculate the investment in V to be disclosed in the accounts of S. A) £ 80,000 B) 시티이미 £ 90,000 £120,000 £156,000 P Ltd bought equipment (cost £90,000) which sustained damage in its 5th year of business use. The asset life was 10 years. After the damage, remaining life was reduced to 3 years & value-in-use to £30,000. Current scrap value is £10,000. Calculate asset impairment. A) £24,000 B) £22,000 £18,000 D) £10,000
B Ltd leased equipment over four years making yearly payments of £15,000 in arrears. If annual interest rates are 8% and license fees to operate the equipment cost the lessor £8,000, calculate the right-of-use value in B's accounts. A) £27,910 B) £34,109 £57,682 £64,578 A ltd purchased 80% of B Ltd for £340,000 when B's net assets were £240,000, and B's property was revalued by £120,000. Calculate the goodwill arising. A) £76,000 B) £52,000 £38,000 £24,000 A Ltd's acid test ratio amounts to one third of the current ratio. Current assets were £90,000. Calculate the amount of inventory held in current assets. A) £25,000 B) £30,000 £45,000 £60,000 S Ltd purchased 45% of V Ltd when the latter company was formed. V's reserves at the end of this year equal £80,000 and S paid £120,000 to acquire V's shares. Calculate the investment in V to be disclosed in the accounts of S. A) £ 80,000 B) 시티이미 £ 90,000 £120,000 £156,000 P Ltd bought equipment (cost £90,000) which sustained damage in its 5th year of business use. The asset life was 10 years. After the damage, remaining life was reduced to 3 years & value-in-use to £30,000. Current scrap value is £10,000. Calculate asset impairment. A) £24,000 B) £22,000 £18,000 D) £10,000
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Transcribed Image Text:B Ltd leased equipment over four years making yearly payments of £15,000 in arrears. If
annual interest rates are 8% and license fees to operate the equipment cost the lessor
£8,000, calculate the right-of-use value in B's accounts.
A) £27,910
B)
£34,109
£57,682
£64,578
A ltd purchased 80% of B Ltd for £340,000 when B's net assets were £240,000, and B's
property was revalued by £120,000. Calculate the goodwill arising.
A) £76,000
B)
£52,000
£38,000
£24,000
A Ltd's acid test ratio amounts to one third of the current ratio. Current assets were
£90,000. Calculate the amount of inventory held in current assets.
A) £25,000
B)
£30,000
£45,000
£60,000
S Ltd purchased 45% of V Ltd when the latter company was formed. V's reserves at the
end of this year equal £80,000 and S paid £120,000 to acquire V's shares. Calculate the
investment in V to be disclosed in the accounts of S.
A) £ 80,000
B)
시티이미
£ 90,000
£120,000
£156,000
P Ltd bought equipment (cost £90,000) which sustained damage in its 5th year of business
use. The asset life was 10 years. After the damage, remaining life was reduced to 3 years
& value-in-use to £30,000. Current scrap value is £10,000. Calculate asset impairment.
A)
£24,000
B)
£22,000
£18,000
D)
£10,000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education