Question (d) and (e) are based on the information below.

d) Bopha Ltd, a general construction company which is based in Limpopo, has a financial year end of 31 December. Bopha Ltd was in a process of constructing a new plant which was available for use on 1 January 2022. During the 2021 financial year, it withdrew its tractor loader, purchased on 1 January 2018 from normal construction operations, for the period 1 March 2021 to 30 June 2021 and used it in the construction of a new plant. This tractor loader had a carrying amount of 336 000 on 1 January 2021 and is depreciated at a rate 20% on straight line basis. The cost price of the new plant before capitalization is R1 200 000.

Calculate the total cost of the new plant as at 31 December 2021. The new plant will be depreciated at 5% per annum on straight line basis when it becomes available for use.

1. R1 196 000

2. R1 140 000

3. R1 256 000

4. R1 200 000

5. R 840 000

   (2)

e) Using the information above, calculate the carrying amount of the tractor loader as at 31 December 202

1. 1) R268 800

2. 2) R168 000

3. 3) R336 000

4. 4) R224 000

5. 5) R504 000