44FFA/FA FINANCIAL ACCOUNTING9.8which it relates from being capitalised?The development is incompleteThe benefits flowing from the completed development are expected to be less than its costFunds are unlikely to be available to complete the developmentThe development is expected to give rise to more than one product131 and 22 and 3AC3 and 41 and 4Theta Co purchased a patent on 31 December 20X3 for $250,for ten years, after which it will be valueless.9.9what amouwillWhich TWO of the any part of the to --

Development expenditure is defined as the expenses incurred usually by the governmental bodies to…

Answered: Which TWO of the following cond which…

Business

Accounting

Which TWO of the following cond which it relates from being capital

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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2. A company has £1.5 million available in one or more of the following projects. Each project cannot be undertaken more than once but they are fully divisible. Project Investment at t0 NPV K £900,000 £135,000 L £900,000 £315,000 M £1,800,000 £600,000 To maximise shareholder wealth, which projects should be undertaken either fully or in part? A K, L and M B K and L C K and M D L and M
Refer to the situation described in BE 11–16. Assume that SCC’s fair value of $40 million approximates fairvalue less costs to sell and that the present value of SCC’s estimated future cash flows is $41 million. If WebHelper prepares its financial statements according to IFRS and SCC is considered a cash-generating unit, whatamount of impairment loss, if any, should WebHelper recognize?
Answer is $105,952.53 , see Fully explain only in excel with correct explanation pls i need explanation and concept too pls definitely ill rate Down Under Boomerang, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $2.35 million. The fixed asset will be depreciated straight-line to zero over its 3-year tax life, after which it will be worthless. The project is estimated to generate $1,745,000 in annual sales, with costs of $655,000. The tax rate is 22 percent and the required return is 12 percent. What is the project's NPV? .
2,- HOW MUCH WILL A CAPITAL OF $10000 AT 18% OF CAPITALIZABLE INTEREST PRODUCESEMESTER IN 5 YEARSA) $23600.63B) $23588.6C) OTHERD) $23673.63 The images are NOT visible in the problem that had already been solved a moment ago
A company is considering two (2) capital expenditure proposals, X and Y. Both options will generate the new line of product that the company will produce. Both are expected to operate for four (4) years. Only one (1) proposal will be accepted. The following information is provided to you: X Y Acquisition cost P46,000.00 P46,000.00 Life 4 4 Profits after depreciation Year 1 P6,500.00 P4,500.00 Year 2 3,500.00 2,500.00 Year 3 13,500.00 4,500.00 Year 4 -1,500.00 14,500.00 Scrap value 4,000.00 4,000.00 Depreciation is charged on a straight-line basis. Required: Calculate the Payback Period for both proposals. Which proposal fared better? Calculate the ARR for both Which proposal fared better? Which appraisal method will you use to decide on this product?
11. The following information pertains to Nonagon Company's biological assets at December 31, 2021: Price of assets in an active market , P 5,000,000 Estimated broker's and dealer's commissions, P 50,000 Transport and other costs expected to be incurred to bring the assets to the market, P 40,000 Selling price in a binding sale agreement, P 5,100,000 At what amount should the biological assets be presented on the statement of financial position?
ABC Ghana Ltd is considering investing in the following projects which are considered mutually exclusive Project1 Project2 Annual cash inflows 1,000,000 2,000,000 Cost of machine 2,500,000 6,000,000 Scrap value of machine 250,000 1,000,000 Expected time: 5years A company in US uses the straight line method of depreciation. However, tax allowable depreciation is 30% on straight line basis. The cost of capital for the company is 20% per annum i) Calculate the Accounting Rate of Return for each project. ii) Calculate the Net present Value (NPV) for each project. iii)Compute the payback period for each project. (Note: In each of the above,advice the company on which of the project to implement or undertake)
The following information relates to questions A16 & A17: Quanto Ltd are considering two new projects, project A and project B. The following cashflows have been established for each of the projects: The company uses a cost of capital for investment appraisal of 12%. There is no scrap value for the investments at the end of year 5.
ABC Ghana Ltd is considering investing in the following projects which are considered mutually exclusive Project1 Project2 Annual cash inflows 1,000,000 2,000,000 Cost of Machine 2,500,000 6,000,000 Scrap value of Machine 250,000 1,000,000 Expected Time 5 years ABC Ghana Ltd uses the straight-line method of depreciation. However, tax-allowable depreciation is 30% on straight line basis. The cost of capital for the company is 20% per annum. Calculate the Accounting Rate of Return for each project, Calculate the Net Present Value (NPV) for each project. And lastly Compute the Payback period for each project?
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Y3 (e) Kwik Ltd (Kwik) runs a unit in Ablekuma Metropolis that has suffered a massive drop in income due to failure in its technology on 1 January 2018. As a result, the following carrying amounts were recorded in the books immediately before the impairment test. GH¢million Goodwill 20 Technology 5 17 Equipment 10 Land 50 Buildings 30 Other net assets 40 The value in use of the unit is estimated at GH¢85 million, and Kwik has received an offer of GH¢75 million for the unit. The technology is worthless, following its complete failure. Other net assets include inventory, receivables and payables. It is considered that the carrying amount of other net assets is a reasonable representation of its net realizable value. Required: In accordance with IAS 36: impairment of assets, show the accounting treatment for the above transactions.