Prepare the balance sheet using the historical cost and Current cost model. Assume that during the year, the value of Office equipment and car increase by 10%. building increase by 20% but IT infrastructure decreased by 5%, prepare the balance sheet based on SPL of these assets.
XYZ Company invested $300 Million in cash equity investment and purchase an office building worth $200 million and office equipment worth $10 million. Middle of the year the company purchased car costing $3 million by cash and IT infrastructure $2 million by cash as well. The office building generates rent revenue of $60 million and incurred operating expenses of $40 million. Additional expenses paid during the year is marketing cost $3 million and administration expenses $2 million. The company also make an investment of $20 million at the end of the year and paid corporation tax amounted to $1 million.
All assets are
By the year-end the consumer price index rose to 160 from an initial level of 125, averaging 140 during the year.
Required:
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Prepare the
balance sheet using the historical cost and Current cost model. -
Assume that during the year, the value of Office equipment and car increase by 10%. building increase by 20% but IT infrastructure decreased by 5%, prepare the balance sheet based on SPL of these assets.
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