题目内容

Wetherby Co purchased a machine on 1 July 20X7 for $500,000. It is being depreciated on a straight-line basis over its expected life often years. Residual value is estimated at $20,000. On 1 January 20X8, following a change in legislation, Wetherby Co fitted a safety guard to the machine. The safety guard cost $25,000 and has a useful life of five years with no residual value.What amount be charged to profit or loss for the year ended 31 March 20X8 in respect of depreciation on this machine?

A. $37,500
B. $37,250
C. $36,250
D. $35,000

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Which of the following would be recognised as an investment property under IAS 40 in the consolidated financial statements of Build Co?

A property intended for sale in the ordinary course of business
B. A property being constructed for a customer
C. A property held by Build Co as a right-of-use asset and leased out under a six-month lease
D. A property owned by Build Co and leased out to a subsidiary

Carter Co vacated an office building and let it out to a third party on 30 June 20X8. The building had an original cost of $900,000 on 1 January 20X0 and was being depreciated over 50 years. It was judged to have a fair value on 30 June 20X8 of $950,000. At the year-end date of 31 December 20X8 the fair value of the building was estimated at $1.2 million. Carter Co uses the fair value model for investment property.What amount will be shown in revaluation surplus at 31 December 20X8 in respect of this building?

A. $203,000
B. $353,000
C. $747,000
D. $247,000

Carriageways Co had the following bank loans outstanding during the whole of 20X8: $m 9% loan repayable 20X9 15 11% loan repayable 20Y2 24 Carriageways Co began construction of a qualifying asset on 1 April 20X8 and withdrew funds of $6 million on that date to fund construction. On 1 August 20X8 an additional $2 million was withdrawn for the same purpose. Calculate the borrowing costs which can be capitalised in respect of this project for the year ended 31 December 20X8.

A. $549,333
B. $411,999
C. $750,000
D. $350,000

Fido Feed Ltd has the following loans in place throughout the year ended 31 December 20X8. $m 10% bank loan 140 8% bank loan 200 On 1 July 20X8 $50 million was drawn down for construction of a qualifying asset which was completed during 20X9. What amount should be capitalised as borrowing costs at 31 December 20X8 in respect of this asset?

A. $5.6 million
B. $2.8 million
C. $4.4 million
D. $2.2 million

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