Ergo Co acquired an item of plant on 1 July 20X5 at a cost of $250,000. Ergo Co depreciates its plant at a rate of 20% on a reducing balance basis. As at 30 June 20X6, the manufacturer still makes the same item of plant and its current price is $300,000.

Required

What is the carrying amount to be shown in the statement of financial position of Ergo Co as at 30 June 20X6 under historical cost and current cost?

Answer rating: 100% (QA)

Under Historical Cost The carrying amount of the plant as at 30 June 20X6 under ... View the full answer