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Question 20

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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 to adjust for the tax effect of the revaluation at 30 June 2013 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 to adjust for the tax effect of the revaluation at 30 June 2013 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 to adjust for the tax effect of the revaluation at 30 June 2013 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 to adjust for the tax effect of the revaluation at 30 June 2013 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 to adjust for the tax effect of the revaluation at 30 June 2013 is: A) B) C) D)

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