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?

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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