Homework Help is Here – Start Your Trial Now!
Business
Accounting
The question is about MFRS 116 (property,plant, and equipment)

The question is about MFRS 116 (property,plant, and equipment)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
100%

The question is about MFRS 116 (property,plant, and equipment)

QUESTIONS 1. Robin purchased an item of plant. The details are as follows:ue e RM RM List price 1,200,000 Trade discount 10% Shipping and handling Pre-production testing 16,000 25,000 Maintenance for four years 60,000 Site preparation Concrete reinforcement 12,000 Electrical cabling and wiring 34,000 Labour cost 36,000
Transcribed Image Text:QUESTIONS 1. Robin purchased an item of plant. The details are as follows:ue e RM RM List price 1,200,000 Trade discount 10% Shipping and handling Pre-production testing 16,000 25,000 Maintenance for four years 60,000 Site preparation Concrete reinforcement 12,000 Electrical cabling and wiring 34,000 Labour cost 36,000
Property, Plant and Equipment 469 Robin had specified wrong cables and the cost of correcting the error of ps RM12,000 is included in the electrical cabling costs. Robin settled the amount due to the vendor within the credit period and obtained a 2% early settlement discount on the purchase price. The plant is expected to last for five years, at the end of which Robin w will incur compulsory dismantling costs of RM10,000 and site restoration cost of RM5,000. The present value of RM1 received in five years' time is RM0.75, using a discount rate of 6%. The residual value of the plant is estimated at RM26,000. Required: Calculate the amount that will be recognised as plant. b. Show the extract of the statement of profit or loss and other comprehensive income of Robin. Show the extract of the statement of financial position at the end of а. C. year 1.
Transcribed Image Text:Property, Plant and Equipment 469 Robin had specified wrong cables and the cost of correcting the error of ps RM12,000 is included in the electrical cabling costs. Robin settled the amount due to the vendor within the credit period and obtained a 2% early settlement discount on the purchase price. The plant is expected to last for five years, at the end of which Robin w will incur compulsory dismantling costs of RM10,000 and site restoration cost of RM5,000. The present value of RM1 received in five years' time is RM0.75, using a discount rate of 6%. The residual value of the plant is estimated at RM26,000. Required: Calculate the amount that will be recognised as plant. b. Show the extract of the statement of profit or loss and other comprehensive income of Robin. Show the extract of the statement of financial position at the end of а. C. year 1.
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting for Property, Plant and Equipment
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS