Burger Queen Limited classified the following food processing plant as a non-current held for sale on...

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Burger Queen Limited classified the following food processing plant as a non-current held for sale on 2 January 2023, having met all the criteria for classification as held for sale required by IFRS 5. The effect of the classification as held for sale and measurement at initial classificatio the table below: Time left 0:57:53 Carrying amount on classification IFRS 5 impairment Carrying amount Food processing 378 000 21 770 356 230 plant Depreciation on the food processing plant is provided for at 15% per annum straight-line based on a cost of R480 000 (no residual value). The recoverable amount of the food processing plant based on value in use is R360 000 at 31 May 2023, and the remaining useful life of the food processing plant on 31 May 2023 is 5 years and 3 months. The residual value of the asset has not changed and is still Rnil. On 31 May 2023 the directors of Burger Queen Ltd reconsidered and decided to no longer dispose of the food processing plant as they unexpectedly secured a large contract to produce patties for the next five years. Calculate the depreciation charge on the food processing plant for 2023: Burger Queen Limited classified the following food processing plant as a non-current held for sale on 2 January 2023, having met all the criteria for classification as held for sale required by IFRS 5. The effect of the classification as held for sale and measurement at initial classificatio the table below: Time left 0:57:53 Carrying amount on classification IFRS 5 impairment Carrying amount Food processing 378 000 21 770 356 230 plant Depreciation on the food processing plant is provided for at 15% per annum straight-line based on a cost of R480 000 (no residual value). The recoverable amount of the food processing plant based on value in use is R360 000 at 31 May 2023, and the remaining useful life of the food processing plant on 31 May 2023 is 5 years and 3 months. The residual value of the asset has not changed and is still Rnil. On 31 May 2023 the directors of Burger Queen Ltd reconsidered and decided to no longer dispose of the food processing plant as they unexpectedly secured a large contract to produce patties for the next five years. Calculate the depreciation charge on the food processing plant for 2023:

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The remaining useful life of the food processing plant on 31 May 2023 is 5 years ... View the full answer