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3 At 30 September 20X2, the following balances existed in the records of Lambda Co:
Plant and equipment:
Cost $860,000
Accumulated depreciation $397,000
During the year ended 30 September 20X3, plant with a written down value of $37,000 was
sold for $49,000. The plant had originally cost $80,000. Plant purchased during the year cost
$180,000. It is Lambda Co’s policy to charge a full year’s depreciation in the year of acquisition
of an asset and none in the year of sale, using a rate of 10% on the straight line basis.
What was the carrying amount that should appear in Lambda Co’s statement of financial
position at 30 September 20X3 for plant and equipment?There is no point in simply typing out a full question and expecting to be provided with a full answer.
You must have an answer in the same book in which you found the question, so ask about whatever it is in the answer that you are not clear about and I will explain.
I do assume that you have watched my free lectures on this which explain everything needed to be able to answer this question. The lectures are a complete free course for Paper FA and cover everything needed to be able to pass the exam well.
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