Solved

Use the Following Information to Answer This Question

Question 5

Multiple Choice

Use the following information to answer this question.
An extract of a company's draft statement of financial position at 30 June 2012 discloses the following:
Plant (at cost) $500 000
Less Accumulated depreciation 300 000 $200 000
On 30 June 2013, the company assessed the fair value of the plant to be $350 000. At 30 June 2014, the carrying amount of the plant was $250 000.
The tax rate is 30%. Depreciation rates are 10% p.a. (accounting) and 12.5% p.a. (tax) using the straight-line method.
The journal entries necessary to record the revaluation of plant (ignoring any tax effect) at 30 June 2013 in accordance with IAS 16 Property, Plant and Equipment is:


A) Use the following information to answer this question. An extract of a company's draft statement of financial position at 30 June 2012 discloses the following: Plant (at cost) $500 000 Less Accumulated depreciation 300 000 $200 000 On 30 June 2013, the company assessed the fair value of the plant to be $350 000. At 30 June 2014, the carrying amount of the plant was $250 000. The tax rate is 30%. Depreciation rates are 10% p.a. (accounting) and 12.5% p.a. (tax) using the straight-line method. The journal entries necessary to record the revaluation of plant (ignoring any tax effect) at 30 June 2013 in accordance with IAS 16 Property, Plant and Equipment is: A) B) C) D)
B) Use the following information to answer this question. An extract of a company's draft statement of financial position at 30 June 2012 discloses the following: Plant (at cost) $500 000 Less Accumulated depreciation 300 000 $200 000 On 30 June 2013, the company assessed the fair value of the plant to be $350 000. At 30 June 2014, the carrying amount of the plant was $250 000. The tax rate is 30%. Depreciation rates are 10% p.a. (accounting) and 12.5% p.a. (tax) using the straight-line method. The journal entries necessary to record the revaluation of plant (ignoring any tax effect) at 30 June 2013 in accordance with IAS 16 Property, Plant and Equipment is: A) B) C) D)
C) Use the following information to answer this question. An extract of a company's draft statement of financial position at 30 June 2012 discloses the following: Plant (at cost) $500 000 Less Accumulated depreciation 300 000 $200 000 On 30 June 2013, the company assessed the fair value of the plant to be $350 000. At 30 June 2014, the carrying amount of the plant was $250 000. The tax rate is 30%. Depreciation rates are 10% p.a. (accounting) and 12.5% p.a. (tax) using the straight-line method. The journal entries necessary to record the revaluation of plant (ignoring any tax effect) at 30 June 2013 in accordance with IAS 16 Property, Plant and Equipment is: A) B) C) D)
D) Use the following information to answer this question. An extract of a company's draft statement of financial position at 30 June 2012 discloses the following: Plant (at cost) $500 000 Less Accumulated depreciation 300 000 $200 000 On 30 June 2013, the company assessed the fair value of the plant to be $350 000. At 30 June 2014, the carrying amount of the plant was $250 000. The tax rate is 30%. Depreciation rates are 10% p.a. (accounting) and 12.5% p.a. (tax) using the straight-line method. The journal entries necessary to record the revaluation of plant (ignoring any tax effect) at 30 June 2013 in accordance with IAS 16 Property, Plant and Equipment is: A) B) C) D)

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q4: Revaluations under AASB 116 Property,Plant and Equipment

Q6: AASB 116 requires disclosure, for each class

Q7: Under the cost model, after initial recognition

Q8: A change in accounting policy from the

Q9: Replicator Limited acquired an item of plant

Q10: ABC Limited acquired an item of plant

Q11: Subsequent to the initial recognition of an

Q11: Costs that may be included in the

Q24: Property,plant and equipment are assets that:<br>A)are expected

Q28: Wilson Limited applied the straight-line method of