A factory plant has an expected selling price of N$440 000 if sold at reporting date, where this selling price was determined based on the selling prices of identical assets in an active market. The selling price has been presented inclusive of a transaction tax of 10%. If the asset were indeed sold for N$440 000, a recoupment of N$200 000 would arise on which the tax authorities would levy income tax of 30%. Legal costs of N$10 000 would be incurred to make the sale. The fair value less cost of disposal would be:

Select one:

A. N$430 000.

B. N$390 000

C. N$370 000.

D. N$330 000.

E. N$386 000.

Answer rating: 100% (QA)

Answer The fair value less cost of disposal is Fa... View the full answer