As at 30 September 20X3 the value of Dune's property in its statement of financial position...

 

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As at 30 September 20X3 the value of Dune's property in its statement of financial position comprised: Cost (useful life 15 years) $45 million $6 million Accumulated depreciation On 1 April 20X4, Dune decided to sell the property. The property is being marketed by a property agent at a price of $42 million, which was considered a reasonably achievable price at that date. The expected costs to sell have been agreed at $1 million. Recent market transactions suggest that actual sale prices achieved for this type of property in the current market conditions are 10% less than the price at which they are marketed. At 30 September 20X4 the property has not been sold. At what value should the property be reported in Dune's statement of financial position as at 30 September 20X4? As at 30 September 20X3 the value of Dune's property in its statement of financial position comprised: Cost (useful life 15 years) $45 million $6 million Accumulated depreciation On 1 April 20X4, Dune decided to sell the property. The property is being marketed by a property agent at a price of $42 million, which was considered a reasonably achievable price at that date. The expected costs to sell have been agreed at $1 million. Recent market transactions suggest that actual sale prices achieved for this type of property in the current market conditions are 10% less than the price at which they are marketed. At 30 September 20X4 the property has not been sold. At what value should the property be reported in Dune's statement of financial position as at 30 September 20X4?

Answer rating: 100% (QA)

At 30 September 2014 Carrying amount 375 million 45000 6... View the full answer