Notes: 1. The selling price of the inventory is how much Mr. Murphy would purchase the inventory for his chemist in a neighbouring town. If Glen Oaks continue in business, these products would be sold to retail customers at €6,000, and the selling costs are approximately €2,000. 2. If the assets are sold, the leasehold improvements would have a value of nil and it is unlikely that a buyer of the business can be found to purchase it as a going concern. Required: a) b) Calculate the amount that the assets of Glen Oaks Chemist Itd should be recorded in the statement of position at 30 June 20X7. Calculate the amount that the assets of Glen Oaks Chemist Itd should be recorded in the statement of position at 30 June 20X7 if the value in use was $11,000.

Notes: 1. The selling price of the inventory is how much Mr. Murphy would purchase the inventory for his chemist in a neighbouring town. If Glen Oaks continue in business, these products would be sold to retail customers at €6,000, and the selling costs are approximately €2,000. 2. If the assets are sold, the leasehold improvements would have a value of nil and it is unlikely that a buyer of the business can be found to purchase it as a going concern. Required: a) b) Calculate the amount that the assets of Glen Oaks Chemist Itd should be recorded in the statement of position at 30 June 20X7. Calculate the amount that the assets of Glen Oaks Chemist Itd should be recorded in the statement of position at 30 June 20X7 if the value in use was $11,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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