Financial Accounting $1$

$2021$ Sample $-$ Final Examination $-$ IBA

Moe Glee's business acquired a group of assets two years ago to help with expansion plans, but Moe would now like to review the use of some of those assets. Moe's close friend Ana Maui Harry's has been helping out and started to record some details about the assets purchased but never quite completed the job.

$\backslash$table$[[\backslash$table$[[$Purchase$],[$Date$]],$Asset Name,Depreciation Details,$\backslash$table$[[$Original$],[$Cost$]],\backslash$table$[[$Expected$],[$Disposal Value$]]],[\frac{1}{7}\frac{?}{19},$Inventory,,$15,000,1,500],[,$Land,$40\%$ per annum,$120,000,],[,$Off Road Truck,Maximum usage $-50,000$ jumps,$142,000,7,500],[,\backslash$table$[[$Parachute Training$],[$Simulator$]],,42,000,]]$

Notes:

Assets that are depreciated using the straight$-$line method are deemed to have a useful life of $10$ years and residual value equal to $10\%$ of their cost.

The Parachute Training Simulator performed $15,000$ jumps in its first year of use.

All relevant depreciation has been recorded in the company's books up until June $30,2020.$

During the year ended $\frac{30}{6}\frac{?}{21},$ the following transactions took place:

On August $12020,$ Deep in the Jungle sold their Parachute Training Simulator. A local flying school agreed to purchase the machine for $$150,000$ cash. An additional $1,000$ jumps had been done between July $2020$ and the date of sale.

On January $12021,$ Deep in the Jungle traded in their Off Road Truck for an APC, a vehicle that will allow them to take a group of adventurers deeps into the jungle. Moe received a trade$-$in of $$20,000$ for the Truck and paid an additional $$60,000$ cash to purchase the APC. Ana has worked out the accumulated depreciation on the truck was $$19,760$ at the date of the trade$-$in$.$

On March $302021,$ Deep in the Jungle exchanged the land they had purchased for a Warehouse that could store their vehicles and equipment. The Warehouse was being advertised for $$140,000.$ The land had a fair value of $$117,000$ at the time of the exchange.