In line with government policy to improve emergency health care in the country, the government has...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
In line with government policy to improve emergency health care in the country, the government has acquired 275 ambulances for distribution to each constituency in the country. The cost of the ambulance includes: Purchase price Freight Charges Delivery and handling charges Installation and assembling of auxiliary parts Training of experts Cost of presidential commissioning Test running of the vehicles Branding of the vehicles with national emblems Professional fees Insurance Cost of distribution of ambulances Borrowing cost GHS 75,000,000.00 7,500,000.00 8,200,000.00 30,000,000.00 500,000.00 200,000.00 150,000.00 300,000.00 120.000.00 450,000.00 340,000.00 600,000.00 Additional information: 1. The borrowing cost is in respect of a loan that was contracted from the African Development Bank to purchase the ambulances. 2. The Government of Ghana has adopted the benchmark approach provided in IPSAS 5 3. 50% of the professional fees is in respect of allowances paid to in-house technical experts in respect of the acquisition while the remaining relates independent technical experts. Required recognition and justify the exclusion of cost excluded from the determination of PPE cost In reference to IPSAS 17-Property, Plant, and Equipment and IPSAS 5, determine the cost of initial (5 Marks) In line with government policy to improve emergency health care in the country, the government has acquired 275 ambulances for distribution to each constituency in the country. The cost of the ambulance includes: Purchase price Freight Charges Delivery and handling charges Installation and assembling of auxiliary parts Training of experts Cost of presidential commissioning Test running of the vehicles Branding of the vehicles with national emblems Professional fees Insurance Cost of distribution of ambulances Borrowing cost GHS 75,000,000.00 7,500,000.00 8,200,000.00 30,000,000.00 500,000.00 200,000.00 150,000.00 300,000.00 120.000.00 450,000.00 340,000.00 600,000.00 Additional information: 1. The borrowing cost is in respect of a loan that was contracted from the African Development Bank to purchase the ambulances. 2. The Government of Ghana has adopted the benchmark approach provided in IPSAS 5 3. 50% of the professional fees is in respect of allowances paid to in-house technical experts in respect of the acquisition while the remaining relates independent technical experts. Required recognition and justify the exclusion of cost excluded from the determination of PPE cost In reference to IPSAS 17-Property, Plant, and Equipment and IPSAS 5, determine the cost of initial (5 Marks)
Expert Answer:
Answer rating: 100% (QA)
In accordance with IPSAS 17Property Plant and Equipment and IPSAS 5 the cost of initial recognition of the ambulances and justification for the exclus... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these accounting questions
-
Compute Apple's profit margin for the year ended September 24, 2022. Express amount in decimal form, rounded 3 digits (e.g., express 7.3% as 0.073) Net sales: Products Services Total net sales Cost...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
Holly funded the Holly Marx Trust in January 2020. The entire trust income is payable to her adult son Jack for 20 years. At the end of the twentieth year, the trust assets are to pass to Hollys...
-
Prepare adjusting entries for the following transactions: (a) The beginning balance of the Supplies account was $245. During the month the company bought additional supplies in the amount of $735. At...
-
Is it possible for Congress and the president to carry out an expansionary fiscal policy if the money supply does not increase? Briefly explain.
-
Greyt Dog Beds Ltd manufactures dog beds specifically designed for greyhounds and whippets. The company purchases all the required materials from external suppliers and designs and assembles the...
-
On May 1, Jeff Wilkins started Skyline Flying School, a company that provides flying lessons, by investing $45,000 cash in the business. Following are the assets and liabilities of the company on May...
-
If Ax+By+5z=C is an equation for the plane containing the point (0,0,1) and the line x-1=Y+2, z=72, 3 then A+B+C=
-
onsider the model of the electrically heated stirred-tank system in Section 2.4.3. Subscript e refers to the heating element: (a) Derive transfer functions relating changes in outlet temperature T to...
-
Lucia Jackson is a 21 year old aspiring performing artist. Lucia graduated from a Bachelor of Musical Theatre at Griffith University (as a Commonwealth Supported Student) in September 2020. Some of...
-
2. Assume demand is given by Qd= 250-2P and supply is given by Qs= -25 + 3.5P. A. Sketch the market indicating the reservation price and minimum selling price. B. Determine the equilibrium price and...
-
R2 SO/0 18 Link 1 21.10.6.16/30 S0/1 Link 2 21.10.6.20/30 R1.21 S0/2 .17 72 SO/0 25 22 S0/0 RIPv2 Packet from R3 Subnet Hops 5 62.18.50.0/23 66.1.0.0/16 144.5.9.0/25 151.9.0.0/16 Code Destination...
-
Please look at the attached file and answer the following questions. 1. Did I calculate the Returns correctly? 2. Please teach me how to calculate the covariance from the figures on the Excel. Please...
-
Parkview Fish Tacos sells tacos for $5.50 each. The cost of each taco follows: Materials (food) Labor Variable overhead Fixed overhead ($7,200 per month, 4,500 tacos per month) ok Total costs per...
-
The second advertisement states that half the salespeople make more than $3,000 per month. Suppose there are eight salespeople. What would the eighth person need to earn for the median to be $3,000...
-
1. Suppose a card is drawn from a well-shuffled standard deck of 52 cards. Find the probability of each of the following scenarios (your answer needs to be as a fraction in simplest form): a) a...
-
Discuss the information available from the following techniques in the analysis of inorganic pigments used in antique oil paintings: (i) Powder X-ray diffraction, (ii) Infrared and Raman...
-
Robert Ramos (age 36) is a single taxpayer, living at 8765 Bay Dr., Monterey, CA 93940. His Social Security number is 976-23-5132. Robert's earnings and income tax withholding as the manager of a...
-
Steve Drake sells a rental house on January 1, 2012, and receives $130,000 cash and a note for $55,000 at 10 percent interest. The purchaser also assumes the mortgage on the property of $45,000....
-
During 2012, Tom sold Sears stock for $10,000. The stock was purchased 4 years ago for $13,000. Tom also sold Ford Motor Company bonds for $35,000. The bonds were purchased 2 months ago for $30,000....
-
Carry out an Internet search to find more examples of project success and failure. From your search, are there any common themes in each? What are the implications of success and failure in each case?
-
How successful are government contracting arrangements? How do these compare, for instance, with the arrangements BAA had with their suppliers in the construction of T5 at Heathrow (Project...
-
What is the role of brainstorming and how might it be used to greatest effect?
Study smarter with the SolutionInn App