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Reading all these feed backs, I am scared stiff. Fingers crossed and trusting in God to see me through.
Passed with 60, on first attempt despite all the errors I made. Thank God for answered prayers.
Thank you sir. I get it now. If it the question had been adjustment in subsidiary books, then it would have been:
URP of 70,000 – 14,000(excess depreciation) = 56,000.
Thank you.
Sir, pls also assist with the MCQ below. I got $1,437,600 but the answer says is wrong and I don’t get why. Below is the question:
On 30 April 2014, Algis’s closing inventory was counted and valued at cost of $1.46m. Some items of inventory that had cost $140,000 had been damaged in a fire during March and are not expected to achieve their normal selling price which is calculated by adding a standard mark up of 40%. The sale of these goods will be handled by an agent specializing in fire-damaged goods who is expecting to sell them for 75% of the normal selling price and will charge Algis’s a sales commission of 20%.
At what value will the closing inventory of Algis’s be reported in its statement of financial position as at 30 April, 2014.This one is difficult. I thought linear programming was for situations where we have more than one resource constraints and there are 2 assignments or products. In this case there are 3 products. How can we then plot this on the graph. Really interesting!!!!
Waiting for the solution too
Yes. The cost of the old factory but I hope the professor will still reply so that we will be double sure the solution I have given is right.
You wrote Jake bought factory on May 1999 for £540,000. That’s in the scenario as the initial cot of old factory.
Following the scenario David has painted of Jake reinvesting only £550,000. What I think will apply is this:
Sales Proceeds £600,000
Less Cost. (£540,000)
Gain. £60,000
Rollover relief £10,000 restricted to 85% (£8,500)
Chargeable gain. £50,000 plus 15% non biz (£1,500) = £51,500Since the entire sales proceeds was not reinvested hence partial rollover relief applies. £50,000 (£600,000 – £550,000) will become immediately chargeable for CGT.
The rollover relief relief should have been £10,000 the balancing figure. However because the asset has only 85% business use, only £8,500 will be available for relief. The balance non business portion of £1,500 will also be immediately chargeable bringing the total chargeable gain to £51,500.Sir, please is my answer correct. Please let us know.
Thanks