A company purchased plant and equipment 4 years ago for $100 000. Depreciation is provided using the straight line method over 10 years. The company decided to revalue at the end of the fourth year. The carrying amount was $60 000. The net replacement cost of the plant and equipment was considered to be $75 000 at that date. Calculate the gross replacement cost Calculate accumulated depreciation on gross replacement cost Calculate the carrying amount [12]
A company purchased plant and equipment 4 years ago for $100 000. Depreciation is provided using the straight line method over 10 years. The company decided to revalue at the end of the fourth year. The carrying amount was $60 000. The net replacement cost of the plant and equipment was considered to be $75 000 at that date. Calculate the gross replacement cost Calculate accumulated depreciation on gross replacement cost Calculate the carrying amount [12]
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
A company purchased plant and equipment 4 years ago for $100 000.
carrying amount was $60 000. The net replacement cost of the plant and equipment was considered to
be $75 000 at that date.
Calculate the gross replacement cost
Calculate
Calculate the carrying amount [12]
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