Question 2: A manufacturing entity buys a machine (an item of property, plant and equipment) for 20 million dinars on 1 January 20X1. The machine is held under the cost model and has a useful life of 20 years. The entity has a reporting date of 31 December 20X1 and a functional currency of dollars ($). Exchange rates are as follows: Dinars: $1 1 January 20X1 2.0 31 December 20X1 3.0 Average rate for year-ended 31 December 20X1 2.5 What is the carrving amount of the machine as at 31 December 20X1?
Question 2: A manufacturing entity buys a machine (an item of property, plant and equipment) for 20 million dinars on 1 January 20X1. The machine is held under the cost model and has a useful life of 20 years. The entity has a reporting date of 31 December 20X1 and a functional currency of dollars ($). Exchange rates are as follows: Dinars: $1 1 January 20X1 2.0 31 December 20X1 3.0 Average rate for year-ended 31 December 20X1 2.5 What is the carrving amount of the machine as at 31 December 20X1?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Chapter 2 / Question 2:
A manufacturing entity buys a machine (an item of property, plant and equipment) for 20 million dinars on 1 January 20X1. The machine is held under the cost model and has a useful life of 20 years. The entity has a reporting date of 31 December 20X1 and a functional currency of dollars ($). Exchange rates are as follows:
What is the carrying amount of the machine as at 31 December 20X1?
Transcribed Image Text:Question 2:
A manufacturing entity buys a machine (an item of property, plant and equipment) for 20 million dinars
on 1 January 20X1. The machine is held under the cost model and has a useful life of 20 years. The entity
has a reporting date of 31 December 20X1 and a functional currency of dollars ($). Exchange rates are as
follows:
Dinars: $1
1 January 20X1
2.0
31 December 20X1
3.0
Average rate for year-ended 31 December 20X1
2.5
What is the carrving amount of the machine as at 31 December 20X1?
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