Part A On 1 October 2010, Panama Ltd acquired a building for $200,000. The building had...

Transcribed Image Text:

Part A On 1 October 2010, Panama Ltd acquired a building for $200,000. The building had a useful life of 60 years and a residual value of $40,000. On 31 December 2015, the building was sold for $180,000 cash. Panama Ltd depreciates assets using the straight-line method. Required a b. Calculate the carrying amount of the building at the date of disposal Calculate the gain or loss on disposal (state whether it's a gain or loss) . 4 marks 2 marks Part B On 1 January 2010, Nikao Ltd acquired plant for $100,000. The plant can be used for 500,000 hours after which it can be sold for $20,000 By 31 December 2014 the plant had been used for 200,000 hours. It was revalued to $70,000. The residual value was revised to $30.000 with no change in the useful life of the plant. During 2015 Nikao Ltd used the plant for 120.000 hours. On 31 December 2015 the plant was revalued to $40,000. Nikao Ltd depreciates assets using the units of use method Required (narrations are optional) Prepare all journal entries to record the revaluation of the plant on 31 6 marks December 2014. Prepare all journal entries to record the revaluation of the plant on 31 8 marks December 2015. Part A On 1 October 2010, Panama Ltd acquired a building for $200,000. The building had a useful life of 60 years and a residual value of $40,000. On 31 December 2015, the building was sold for $180,000 cash. Panama Ltd depreciates assets using the straight-line method. Required a b. Calculate the carrying amount of the building at the date of disposal Calculate the gain or loss on disposal (state whether it's a gain or loss) . 4 marks 2 marks Part B On 1 January 2010, Nikao Ltd acquired plant for $100,000. The plant can be used for 500,000 hours after which it can be sold for $20,000 By 31 December 2014 the plant had been used for 200,000 hours. It was revalued to $70,000. The residual value was revised to $30.000 with no change in the useful life of the plant. During 2015 Nikao Ltd used the plant for 120.000 hours. On 31 December 2015 the plant was revalued to $40,000. Nikao Ltd depreciates assets using the units of use method Required (narrations are optional) Prepare all journal entries to record the revaluation of the plant on 31 6 marks December 2014. Prepare all journal entries to record the revaluation of the plant on 31 8 marks December 2015.

Answer rating: 100% (QA)

Part a Answer a The carrying amount of the building at the date of disposal would be 80000 b ... View the full answer