on cost Required: (a) Assuming the firm bought no extra fixed assets and disposed of none, complete the Schedules shown below for the year ended 31st December 2015: FIXED ASSETS DEPRECIATION At cost at start FY Accumulated at start of FY Additions during FY Disposals during the FY Cost at end of FY Charge for the FY Disposals during the FY Accumulated at end FY ||
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- On 1/1/X2, Hudson Enterprises decided to sell equipment it had been using in its business for $25,000 cash. The following data are available for the equipment as of the disposal date: Cost $200,000 Original estimated residual value 25,000 Accumulated Depreciation as of 12/31/X1 160,000 Question: How much gain or loss should be recorded on the sale of this asset?Answer: The company should report a _____ (gain or loss) of $ ___On 31 December 2022 Fraser Ltd's statement of financial position shows motor vehicles at a cost price of $400 000 less accumulated depreciation $100 000. Fraser Ltd uses the cost model to value its assets. On 31 December 2022 an estimate is made that the recoverable amount of the vehicles is $270 000. Under AASB 136, Impairment of Assets, the accounting entry to record the write down of the motor vehicles to recoverable amount is which of the following? O No entry is required DR Impairment loss on motor vehicles (expense) $130 000; CR Accumulated depreciation $130 000 DR Impairment loss on motor vehicles (expense) $30 000; CR Motor vehicles $30 000 DR Impairment loss on motor vehicles (expense) $30 000; CR Accumulated depreciation and impairment losses $30 000In 2015, Bambung Corporation acquired production machinery at a cost of £416,000, which now has a book value of £195,000. The discounted future cash flows from use of the machinery is £175,000 and its fair value less costs to sell is £159,000. What amount should Bambung recognize as a loss on impairment under IFRS? Group of answer choices £16,000 £36,000 -0- £20,000
- MacPro Property Bhd acquired an investment property on 1 January 2015 and measured it using the cost model. On 1 January 2018, MacPro Property Bhd changed the accounting policy and used the fair value model to measure investment property. The acquisition cost of the property was RM70 million and the estimated useful life was 35 years. The fair values of the property were measured as below: Date RM (in million) 31/12/2015 72 31/12/2016 74 31/12/2017 78 31/12/2018 83 Profit after depreciation on investment property but before tax for 2017 and 2018 were RM80 million and RM95 million, respectively. Retained earnings brought forward on 1 January 2017 and 2018, were RM150 million and RM210 million, respectively. Assume that tax rate for 2017 and 2018 was 25%. REQUIRED: Discuss the accounting treatment of the above transaction in accordance to MFRS 108 Accounting Policies, Changes in Accounting Estimates and Errors. Prepare the comparative…Building A is acquired on 1st January 2012 for RM800,000.00. It was depreciated using straight line method for 20 years. The first two years the company uses the cost model but adopt revaluation model afterwards. Revaluations were conducted every three years. Fair values at the date of revaluation were RM693,000.00 in 2014; RM607,500.00 in 2017 and RM490,000.00 in 2020. Give one example when inventory on hand at the reporting date not measured at cost. Prepare journal entries to record revaluations. Show detailed calculations to support your answer.Assume that Bilal company purchased an asset for OMR 10000 on 1 Jan 2014. The company charging OMR 2000 depreciation per annum by following straight-line depreciation method. The company charged total depreciation till 31December 2016 is OMR 6000 and the company decided to sell this asset for OMR 3000 on 31st Mar2017. Calculate the gain or loss on sale of asset. a. OMR 500 loss b. None of the given options C. OMR 1000 loss d. OMR 500 profit
- 7. On January 1, 2018 an entity purchased for P4,800,000 machine with useful life of ten years on residual ofP200,000. The machine was depreciated by the double declining balance method. The entity changed to thestraight line method on January 1, 2020 and the residual value did not change. What is the accumulateddepreciation on December 31,2020?a. 2,087,000 c. 2.188,000b. 2,112,000 d. 2,015,200A. MacPro Property Bhd acquired an investment property on 1 January 2015 and measured it using the cost model. On 1 January 2018, MacPro Property Bhd changed the accounting policy and used the fair value model to measure investment property. The acquisition cost of the property was RM70 million and the estimated useful life was 35 years. The fair values of the property were measured as below: Date RM (in million) 31/12/2015 72 31/12/2016 74 31/12/2017 78 31/12/2018 83 Profit after depreciation on investment property but before tax for 2017 and 2018 were RM80 million and RM95 million, respectively. Retained earnings brought forward on 1 January 2017 and 2018, were RM150 million and RM210 million, respectively. Assume that tax rate for 2017 and 2018 was 25%. REQUIRED: Discuss the accounting treatment of the above transaction in accordance to MFRS 108 Accounting Policies, Changes in Accounting Estimates and Errors. Prepare the comparative financial…Maria Company had the following property, plant, and equipment at December 31, 2014:Cost Book ValueLand 4,000,000 4,000,000Office building 30,000,000 22,500,000Machinery 6,000,000 3,000,000 These assets are carried under the cost model since their acquisition on January 3, 2005. The straight linemethod is used in computing depreciation charges. Assume that the residual value is immaterial. On January 2,2015, Maria decided to adopt the revaluation mode. Accordingly, reputable appraisers submitted the followingfair values: Land – P10,000,000 Office Building – P37,500,000 Machinery – P5,000,000There was no change in useful life. The office building has 40 years of useful life, while machinery is beingdepreciated over 20 years. On January 5, 2017, the Company had these assets subjected to a secondrevaluation. Result of the second revaluation show the following sound values: Land – P8,000,000 Office Building –P22,750,000* Machinery – P2,000,000* Maria uses the proportional approach in…
- On January 1, 20x1, PRISTINE UNCORRUPTED Co. acquired an equipment for ₱4,000,000. The equipment will be depreciated using the straight-line method over 20 years. The estimated residual value is ₱400,000. In 20x6, following a reassessment of the realization of the expected economic benefits from the equipment, PRISTINE Co. changed its depreciation method to sum-of-the-years digits (SYD). The remaining useful life of the asset is estimated to be 4 years and the residual value is changed to ₱200,000. How much is the depreciation expense in 20x6?Nyhiraba Limited purchased an asset on 1st January 2015 for an amount of R5 million. The assethas an economic useful life of 10 years for which the company uses to generate operational income.On 1st July 2018, the asset’s fair value was R3.8 million, and the cost to sell was estimated at R800,000.The asset’s value in use on that date was valued at R2.95 million. Determine whether the asset isimpaired or not under IAS 36. Justify your answer with calculations and an explanation.Impairment of a CGU (Cash Generating Unit) Potters Ltd has determined that its fine china division is a CGU. The carrying amounts of the assets at 30 June 2016 are as follows: Factory $210 000 Land 150 000 Equipment 120 000 Inventories 60 000 Potters Ltd calculated the value in use of the division to be $510 000. Required: Provide the necessary journal entries for the impairment loss. Answer: POTTERS LTD If recoverable amount is xxx, then there is an impairment loss of xxx. Assuming the inventory is carried at the lower of costs and net realisable value, the allocation of the impairment loss is as follows: Carrying Proportion Allocation Net Carrying Amount of Loss Amount…