• All the motor vans were purchased on 1 April 2018. Depreciation has been, and is to be, provided at the rate of 20% per annum on cost from the date of purchase to the date of sale On 31 March 2021 one van, which had cost KES900, 000 was sold for KES 550, 000 as part settlement of the price of KES800, 000 of a new van, but no entries with regard to these transactions were made in the books.

On 31st August 2018, Musk Traders purchased a machine on credit for a cost price of R402 500(including VAt at 15 percent) Machinery is depreciated over six years according to the straight line basis and there is no residual value on this machine as it is highly specialised. MUSK TRADERS HAS A 30 JUNE YEAR-END   CALCULATE THE DEPRECIATION AND ACCUMULATED DEPRECIATION FOR 2019 AND 2020.

Quorum Ltd owns and operates an item of machinery. At 1 October 2019 the machinery had acarrying value of R700 000. The original cost was R1 400 000 and accumulated depreciation wasR700 000. The machinery is depreciated at a rate of 12.5% per annum on a straight line basis.  On 1 February 2020 the machinery sustained some damage after an incident in the factory. Anassessor has inspected the machinery and determined that the estimated value in use of themachinery is now R500 000. The current disposal value after costs of the machinery is R350 000and trade‐in value (only in the event of an upgrade) is R550 000. The company still considers themachinery to be functional and is not considering an upgrade at the moment Calculate the recoverable amount of the plant on 1 February 2020.

Quorum Ltd owns and operates an item of machinery. At 1 October 2019 the machinery had acarrying value of R700 000. The original cost was R1 400 000 and accumulated depreciation wasR700 000. The machinery is depreciated at a rate of 12.5% per annum on a straight line basis.On 1 February 2020 the machinery sustained some damage after an incident in the factory. Anassessor has inspected the machinery and determined that the estimated value in use of themachinery is now R500 000. The current disposal value after costs of the machinery is R350 000and trade‐in value (only in the event of an upgrade) is R550 000. The company still considers themachinery to be functional and is not considering an upgrade at the moment.  Q.1.4 Calculate the carrying value of the plant at the year‐end dated 30 September 2020.HINT: Convert the remaining useful life to months.Q.1.6 Explain in your own words the key objective of IAS36 – Impairment of assets.

A company which uses the revaluation model for its PPE bought a building on 1 January 2014 for £100m. The building has an estimated useful life of 50 years and nil residual value. On 31 December 2018, the building was revalued at £81m and on 31 December 2020 it was revalued for a second time at £78m. The company uses the straight-line method of depreciation for all PPE items. There was no change to the remaining useful life after each revaluation. What is the net effect of both revaluations on the statement of comprehensive income? Select one: a. A revaluation loss in the income statement of £10m b. A revaluation loss in the income statement of £14m Oc. A revaluation loss in the income statement of £22m d. A revaluation loss in the income statement of £12m e. A revaluation loss in the income statement of £4.2m f. A revaluation loss in the income statement of £8.4m

Quorum Ltd owns and operates an item of machinery. At 1 October 2019 the machinery had acarrying value of R700 000. The original cost was R1 400 000 and accumulated depreciation wasR700 000. The machinery is depreciated at a rate of 12.5% per annum on a straight line basis.On 1 February 2020 the machinery sustained some damage after an incident in the factory. Anassessor has inspected the machinery and determined that the estimated value in use of themachinery is now R500 000. The current disposal value after costs of the machinery is R350 000and trade‐in value (only in the event of an upgrade) is R550 000. The company still considers themachinery to be functional and is not considering an upgrade at the moment.Required:Q.1.1 What is the carrying value of the machinery immediately before impairment?Q.1.2 Calculate the recoverable amount of the plant on 1 February 2020. Q.1.3 Calculate the amount of the impairment loss that would be recognised, if any, on1 February 2020.Q.1.4 Calculate…

Quorum Ltd owns and operates an item of machinery. At 1 October 2019 the machinery had acarrying value of R700 000. The original cost was R1 400 000 and accumulated depreciation wasR700 000. The machinery is depreciated at a rate of 12.5% per annum on a straight line basis.  On 1 February 2020 the machinery sustained some damage after an incident in the factory. Anassessor has inspected the machinery and determined that the estimated value in use of themachinery is now R500 000. The current disposal value after costs of the machinery is R350 000and trade‐in value (only in the event of an upgrade) is R550 000. The company still considers themachinery to be functional and is not considering an upgrade at the moment.  What is the carrying value of the machinery immediately before impairment? .

Awni Company purchased a new machine on May 1, 2010 for € 44,000. At the time of acquisition, the machine was estimated to have a useful life of ten years and an estimated salvage value of € 2,000 The company has recorded monthly depreciation using the straight - line method. On March 1, 2019, the machine was sold for € 6,000. What should be the loss recognized from the sale of the machine?

Awni Company purchased a new machine on May 1, 2010 for €44,000. At the time of acquisition, the machine was estimated to have a useful life of ten years and an estimated salvage value of €2,000. The company has recorded monthly depreciation using the straight-line method. On March 1, 2019, the machine was sold for €6,000. What should be the loss recognized from the sale of the machine?

Baltika plc purchased a van on 1 November 2020 for a total cost of £28,000 by paying £21,500 cash and trading in an old van. The old van had cost £25,000 and the related accumulated depreciation was £17,500. What is the profit/loss on disposal of the old van in Baltika plc's statement of profit or loss for the year ended 31 December 2020?