Burger Queen Limited classified the following food processing plant as a non-current held for sale on 2January 2023, having met all the criteria for classification as held for sale required by IFRS 5.The effect of the classification as held for sale and measurement at initial classification Time left 0:57:53the table below:Carrying amount onclassificationIFRS 5 impairmentCarrying amountFood processing 378 000plant21 770356 230Depreciation on the food processing plant is provided for at 15% per annum straight-line based on acost of R480 000 (no residual value). The recoverable amount of the food processing plant based onvalue in use is R360 000 at 31 May 2023, and the remaining useful life of the food processing plant on31 May 2023 is 5 years and 3 months. The residual value of the asset has not changed and is still Rnil.On 31 May 2023 the directors of Burger Queen Ltd reconsidered and decided to no longer dispose ofthe food processing plant as they unexpectedly secured a large contract to produce patties for thenext five years.Calculate the depreciation charge on the food processing plant for 2023:a.38 667b. 72 00067 583d. 39 581Clear my choice

DETAILED ANALYSISCorrect Option: C. The depreciation charge on the food processing plant for 2023 is…

Answered: Burger Queen Limited classified the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

On 30 June 2018, HTL Bhd classifies a business segment as a disposal group for sale. Thecarrying amount and the impairment loss recognised are as follows:BeforeRM’mImpairmentRM’mAfterRM’mGoodwill allocated 50 950) -Property, at revalued amount 80 (13.3) 66.7Plant and equipment, at cost 100 (16.7) 83.3AFS investment at fair value 40 - 40Other monetary assets 30 - 30Net amount 300 (80) 220On 31 December 2018, the fair value of the AFS investment increase to RM45m. On thisdate, HTL Bhd signs an agreement with a third party to dispose of the business for aconsideration of RM240m. Costs to sell are estimated at 3% of the consideration.Required:Compute the reversal of impairment loss that shall be recognised on 31 December 2018.
The Whistler Company accounts for its property, plant and equipment using the cost model. On 30 October 20X7 Whistler classified an item of property, plant and equipment as held for sale in accordance with IFRS5, Non-current assets held for sale and discontinued operations. At that date the asset's carrying amount was CU20,000, its fair value was estimated at CU17,000 and the costs to sell at CU2,000. The value in use from the continued use of the asset if it was not sold was estimated at CU13,000. The asset has not yet been sold. In accordance with IFRS5, at what amount should the asset be stated in Whistler's statement of financial position at 31 December 20X7? CU13,000 CU15,000 CU17,000 CU20,000
Bravo Ltd classified one of its buildings as a non-current asset held for sale. This building was measured at cost less accumulated depreciation. It is currently carried at fair value less costs to sell of 150,000. At year end the fair value less costs to sell was 155,500 impairment losses previously recognized unde IAS36 impairment of assets are 1,500 and under IFRS5 1,500 how much of the impairment loss can be reserved
The following assets are included in the December 31, 2022, balance sheet ofFortible Auto Parts, Inc.Accounts Receivable(net of Allowance for Uncollectible Accounts) $ 75,000Accumulated Depreciation, Building 20,000Building 170,000Cash 90,000Land 145,000Merchandise Inventory 92,000Trademark 125,500The total dollar amount of assets classified as property, plant, and equipment onFortible Auto Part's December 31, 2022, classified balance sheet is ____
The following information was taken from the fixed assets register of HogwartsTraders. The vehicles indicated below are the only vehicles owned by the soletrader. The company has a 31 December year end.Hogwarts Traders: Asset RegisterHogwarts Traders: Vehicle 1DatePurchased:1 May 2015 Date CurrentdepreciationAccumulateddepreciationMake andreg.:Toyota Hilux2014 (FG765GP)31 Dec201521 333.33 21 333.33Purchasedfrom:Benji’s Car Sales(Credit)31 Dec201629 866.67 51 200.00Cost Price: 320 000.00 31 Dec201726 880.00 78 080.00Rate ofDepreciation:10% accordingto reducingbalancemethod.31 Dec201824 192.00 102 272.00Sold to: V. Limited. 31 Dec2019? ?Type of Sale: CashDate sold: 1 July 2019Selling Price: 250 000.00 Hogwarts Traders: Vehicle 2DatePurchased:1 August 2019 Date CurrentdepreciationAccumulateddepreciationMake andreg.:Hyundai Atos2019 (ZV109GP)31 Dec2019? ?Purchasedfrom:HyundaiAuto(Cash)Cost Price: R150 000Rate ofDepreciation:15% accordingto straight linemethod.Sold to:Type of Sale:Date…
The following information was taken from the fixed assets register of HogwartsTraders. The vehicles indicated below are the only vehicles owned by the soletrader. The company has a 31 December year end.Hogwarts Traders: Asset RegisterHogwarts Traders: Vehicle 1DatePurchased:1 May 2015 Date CurrentdepreciationAccumulateddepreciationMake andreg.:Toyota Hilux2014 (FG765GP)31 Dec201521 333.33 21 333.33Purchasedfrom:Benji’s Car Sales(Credit)31 Dec201629 866.67 51 200.00Cost Price: 320 000.00 31 Dec201726 880.00 78 080.00Rate ofDepreciation:10% accordingto reducingbalancemethod.31 Dec201824 192.00 102 272.00Sold to: V. Limited. 31 Dec2019? ?Type of Sale: CashDate sold: 1 July 2019Selling Price: 250 000.00Page 4 of 7Hogwarts Traders: Vehicle 2DatePurchased:1 August 2019 Date CurrentdepreciationAccumulateddepreciationMake andreg.:Hyundai Atos2019 (ZV109GP)31 Dec2019? ?Purchasedfrom:HyundaiAuto(Cash)Cost Price: R150 000Rate ofDepreciation:15% accordingto straight linemethod.Sold to:Type of…
The following information was taken from the fixed assets register of HogwartsTraders. The vehicles indicated below are the only vehicles owned by the soletrader. The company has a 31 December year end.Hogwarts Traders: Asset RegisterHogwarts Traders: Vehicle 1DatePurchased:1 May 2015 Date CurrentdepreciationAccumulateddepreciationMake andreg.:Toyota Hilux2014 (FG765GP)31 Dec201521 333.33 21 333.33Purchasedfrom:Benji’s Car Sales(Credit)31 Dec201629 866.67 51 200.00Cost Price: 320 000.00 31 Dec201726 880.00 78 080.00Rate ofDepreciation:10% accordingto reducingbalancemethod.31 Dec201824 192.00 102 272.00Sold to: V. Limited. 31 Dec2019? ?Type of Sale: CashDate sold: 1 July 2019Selling Price: 250 000.00 Hogwarts Traders: Vehicle 2DatePurchased:1 August 2019 Date CurrentdepreciationAccumulateddepreciationMake andreg.:Hyundai Atos2019 (ZV109GP)31 Dec2019? ?Purchasedfrom:HyundaiAuto(Cash)Cost Price: R150 000Rate ofDepreciation:15% accordingto straight linemethod.
On 30 June 2018, HTL Bhd classifies a business segment as a disposal group for sale. The carrying amount and the impairment loss recognised are as follows: Before RM'million Impairment RM'million After RM'million Goodwill allocated 50 950 - Property, at revalued amount 80 (13.3) 66.7 Plant and equipment, at cost 100 (16.7) 83.3 AFS investment at fait value 40 - 40 Other monetary assets 30 - 30 Net amount 300 (80) 220 On 31 December 2018, the fair value of the AFS investment increase to RM45m. On this date, HTL Bhd signs an agreement with a third party to dispose of the business for a consideration of RM240m. Costs to sell are estimated at 3% of the consideration. Required: Compute the reversal of impairment loss that shall be recogniZed on 31 December 2018.
P1,000,000 for another used equipment with fair v Prepare journal entries to record the transactions. Smile Company exchanged used equipment for anofe equipment of Frown Company. The following informata accumulated depr fair PL,200,000. The exchange is nonmonetary. Prob Mello of P2 Required: Price Chars Value Insur Moto Problem 23-7 (ACP) Smile Company exchanged used equipment for s equipment of Frown Company. The following inform pertains to the exchange: Total Less Cash Smile Frow Equipment Accumulated depreciation Fair value of equipment 2,400,000 2,000,000 500,000 2,200,00 1,750,00 500,000 The P20 refu Required: Re Prepare journal entry on the books of Smile and Frown. Pre 654
The following information was extracted from the accounting records of Dilata Ltd on30 June 2020:Dr/(Cr)RLand at cost (note 1) 1 000 000Factory and office buildings at cost (note 1 and 2) ?Machinery and equipment (note 3) 3 000 000Motor vehicles (note 3) 645 715Accumulated depreciation:- Factory and office buildings ?- Machinery and equipment (30 June 2019) (1 080 000)- Motor vehicles (30 June 2019) (235 715)Additional information1. Dilata Ltd acquired and occupied the land on which both the factory and office buildingswere erected on 1 July 2017 at an amount of R1 000 000. The land was revalued for thefirst time on 29 June 2020 by Mr King, an independent sworn appraiser at a fair value of R1 500 000. The factory building was constructed on the land on 1 August 2017, andcompleted and available for use on 1 January 2018. The cost of this factory building amounted to R2 400 000.2. After expansion of operations, an office building was built. The office building was completed and available…
Zamans Equipment Limited acquired as equipment at a cost of $65000 with the term FOB destination, the relevant party paid $100 for freight cost. The sales tax of the equipment was $6000, the assembling cost of the equipment was $1600. Determine the cost of the equipment to be reported on the balance Sheet. Submit You have used 0 of 1 attempt Save
The following trial balance was extracted from the ledger of Juliana at 31 December 2020.JulianaTrial Balance as at 31 December 2020RMRMLand at cost26,000Plant at cost83,000Accumulated Depreciation at 1 January 2020- Plant13,000Office Equipment33,000Accumulated Depreciation at 1 January 2020Office Equipment8,000Receivables198,000Payables52,000Sales763,000Purchases516,000Returns inwards47,000Discount allowed4,000Capital at 1st January 2020230,000Drawings14,000Provision for doubtful debts at 1 January 202023,000Salaries Expense44,000Administration costs38,000Bank75,000Bad debts written off77,000Inventory at 1 January 202084,0001,164,0001,164,000Additional information: Closing inventory is RM74,000. Depreciation on plant is charged at 10% per annum on cost. Depreciation on office equipment is charged at 20% per annum using the reducing balance method. Administration costs include insurance prepaid of RM3,000. Salary accrued amount to RM2,000. The allowance for receivables is to…

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

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