On 1 January 20X8, Mpho, an entity, acquires a machine for BWP20, 000 with an anticipated...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On 1 January 20X8, Mpho, an entity, acquires a machine for BWP20, 000 with an anticipated useful life of 10 years and no residual value. The entity employs the straight-line depreciation method. By 31 December 20X9, the entity opts to divest the machine. Its present market value stands at BWP15, 000, and the entity is assured of a swift sale due to the scarcity of this machinery type in the market. There will be an associated cost of BWP500 for dismantling the machine. a) Illustrate At what value should the machine be included in Mpho's statement of financial position (6 marks) AND what entries should be made to the statement of Profit and Loss (4 marks) for 31 December 20X9? On 1 January 20X8, Mpho, an entity, acquires a machine for BWP20, 000 with an anticipated useful life of 10 years and no residual value. The entity employs the straight-line depreciation method. By 31 December 20X9, the entity opts to divest the machine. Its present market value stands at BWP15, 000, and the entity is assured of a swift sale due to the scarcity of this machinery type in the market. There will be an associated cost of BWP500 for dismantling the machine. a) Illustrate At what value should the machine be included in Mpho's statement of financial position (6 marks) AND what entries should be made to the statement of Profit and Loss (4 marks) for 31 December 20X9?
Expert Answer:
Answer rating: 100% (QA)
a Statement of Financial Position At 31 December 20X9 the machine should be included in Mphos statem... View the full answer
Related Book For
Intermediate accounting
ISBN: 978-0077647094
7th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
Posted Date:
Students also viewed these accounting questions
-
The purchasing-power value figures for the minimum wage in dollars for the years 1 through 18 are shown here. Use these data and exponential smoothing to develop forecasts for the years 2 through 18....
-
Discuss the role of an ombudsman/ombudsperson and how it relates and differentiates from the role of Internal Audit. Do companies with an internal audit function require an ombudsman/ombudsperson? Do...
-
The following questions are adapted from a variety of sources including questions developed by the AICPA Board of Examiners and those used in the Kaplan CPA Review Course to study property, plant,...
-
The annual revenues associated with several large apartment complexes are $300, $450, $425, $50, $75, and $150 for years 0, 1, 2, 3, 4, and 5, respectively. Determine the net cash flow and whether...
-
Refer to the Focus on Fraud feature " Skimming and the Completeness Assertion." Using appropriate resources find an example of a skimming fraud and be prepared to describe the fraud. Your description...
-
Why should an organisation change its recruiting activities to improve employee diversity?
-
What is important in a capital increase where each shareholder takes his proportionate share of the issue?
-
The eight general audit procedures produce evidence about the principal management assertions in financial statements. However, some procedures are useful for producing evidence about certain...
-
Solve the given nonlinear plane autonomous system by changing to polar coordinates. x' = y x(x + y)2 y' = x - y(x+ y)2, x(0) = (5, 0) (r(t), 8(t)) = (solution of initial value problem) X Describe the...
-
Diana acquires, for $65,000, and places in service a 5-year class asset on December 19, 2022. It is the only asset that Diana acquires during 2022. Diana does not elect immediate expensing under ...
-
Is the following a valid data definition statement? (Justify your answer). var2 SBYTE 0Bh, 127, 80h in machine code
-
1) Why are pull systems more robust than push systems? What practical consequences does this have for manufacturing plants? 2) Give an example of applying the following: a. Vroom's Expectancy Theory-...
-
Arca Incorporated makes a single product-a critical part used in commercial airline seats. The company has a standard cost system in which it applies overhead to this product based on the standard...
-
Write a Matlab/Octave function that takes n as input and print the following pattern. Example: If n is 5, the following pattern will be printed. ** *** **** **
-
$125,000 Payroll taxes payable 177,591 Prepare a classified balance sheet in good form. (No monetary amounts are to be shown.) P4.2 (LO 1) Excel (Balance Sheet Preparation) Presented below are a...
-
CNN reported that higher-income shoppers are the biggest bargain shoppers searching Amazon, clicking on their mobile devices and even querying Alexa looking for the best deals. If Rebecca Johnson...
-
(b) The role of global media in utilizing communication and information infrastructures (policies) in responding to public health crisis; and (c) The effects on the faithful in performing their...
-
2. In the circuit given in Figure 2, i,(t) = 5.67cos(5t)A and v (t) = 70.71 cos(5t 60) V a) Find the equivalent load impedance. State whether the load is inductive or capacitive. b) Calculate the...
-
The following transactions occurred during March 2013 for the Wainwright Corporation. The company owns and operates a wholesale warehouse. [These are the same transactions analyzed in Exercise 21,...
-
The following events are indicated in note 15 of J. Crew 's 10K annual report for the fiscal year ended January 29, 2011, and its 10K was filed on March 21, 2011. Acquisition On November 23, 2010,...
-
Corinth Co. leased equipment to Athens Corporation for an eight-year period, at which time possession of the leased asset will revert back to Corinth. The equipment cost Corinth $16 million to...
-
What power does a shareholder with a blocking minority have?
-
Why can management compensation in the form of stock create value?
-
Does a capital increase with pre-emptive subscription rights signal overvaluation of the shares more strongly than one without?
Study smarter with the SolutionInn App