On 31 December 2015 the end of the reporting period, P Ltd holds an interest of 80% in S Ltd. On 2 January 2015, P Ltd sold certain equipment which originally cost R10 000 to S Ltd for R15 000.S Ltd recognises depreciation on this equipment on a straight line basis at a rate of 20% per annum. The unrealized intragroup profit realized in the Property, Plant and equipment of S Ltd will be? Select one: a. R10 000 b. R15 000 c. R 1 400 d. R5 000
On 31 December 2015 the end of the reporting period, P Ltd holds an interest of 80% in S Ltd. On 2 January 2015, P Ltd sold certain equipment which originally cost R10 000 to S Ltd for R15 000.S Ltd recognises depreciation on this equipment on a straight line basis at a rate of 20% per annum. The unrealized intragroup profit realized in the Property, Plant and equipment of S Ltd will be? Select one: a. R10 000 b. R15 000 c. R 1 400 d. R5 000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On 31 December 2015 the end of the reporting period, P Ltd holds an interest of 80% in S Ltd. On 2 January 2015, P Ltd sold certain equipment which originally cost R10 000 to S Ltd for R15 000.S Ltd recognises depreciation on this equipment on a straight line basis at a rate of 20% per annum. The unrealized intragroup profit realized in the Property, Plant and equipment of S Ltd will be?
Select one:
a. R10 000
b. R15 000
c. R 1 400
d. R5 000
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