1. At the end of of 2020, the ABC Group reported in its footnotes that its plant and equipment had an original cost of 5442 million euros and that the accumulation depreciation was 3336 million euros. ABC depreciates its plant and equipment on a straight-line basis under the assumption that the asset has an average useful life of 11 years( assume a 10% salvage value). ABC tax rate equals 19 percent.
2. 
   
3.  What adjustments should be made to the ABC's 
4. (1)balance sheet at the end of 2020 and
5. (2) income statement for the year 2021?
6.  If you assume that the plant and equipment have an average useful life of 12 years ( and a 10% salvage value)

Answer rating: 100% (QA)

To determine the adjustments that should be made to ABC Groups balance sheet at the end of 2020 and income statement for the year 2021 we need to calc... View the full answer