Chapter 6 MULTIPLE CHOICE. Choose the one alternative that best completes the statement oranswers the question. 1) Examples of directly attributable costs provided in AASB 116 that would be included in the value of an item of property, plant and equipment do not include which of the following A) initial delivery and handling costs costs B) installation and assembly costs 2) Kady Ltd purchased a motor vehicle on 1 July 2011for $40 000. The estimated life of the motor vehicle is 100000 km and the residual value is $10 000. If that the vehicle travelled 20 000 km in the year ended 30 June 2012 and the units of production method is used, the journal entry to record depreciation expense at this date is: A) Debit Depreciation expense B) Debit Depreciation expense C Debit Depreciation expense D) Debit Accumulated depreciation 6000 Credit Accumulated depreciation 000 Credit Accumulated depreciation 10000 Credit Accumulated depreciation 8000 Credit Depreciation expense 10 000 8 000 6000 6 000 3) AASB 116 defines property, plant and equipment as tangible items that: A) are held for rental to others and are expected to be used during the current period B) are held for use in the production or supply of goods or services and are expected to be used during the current period C) are held for use in the production or supply of goods or services and are expected to be used during more than one period D) none of the above