Forum Replies Created
- Posts
Question:
As at 1st January 20X5 the factory was valued at cost $14 million, less accumulated depreciation $3 million. During October to December 20X5,it was marketed by a property agent at a price of $13 million, which was considered a reasonable achievable price at that date. The expected costs to sell have been agreed at $500,000 . Recent market transactions suggest that actual selling prices achieved for an industrial building of this nature in the current market conditions are 10% less than the price at which they are marketed.At 31st December 20X5 the factory remained unsold.
At what amount should the factory be reported in Skybound Co’s Statement Of Financial Position as at 31st dec 20X5?
My answer
Carrying Amount = 14-3 = 11 million
Fair Value Less Costs to sell = (13×90%)-0.5
= 11.2 million
As the carrying amount is lower ans should have been 11 million
But the answer in mock is 11.2 million
Sir can you please explain my mistake.
THANKYOUHello sir, as required in this question we have to calculate the profit on disposal and normally we calculate it as proceeds on disposal of non current asset less the carrying value of asset sold i.e.
$450,000 – $310,000 = $140,000
But the answer in the kit is $50,000 which i m not getting, what’s wrong in this solution please let me know
And sorry as i asked for a fast reply will wait now thankyouHello, Can anyone help me out in this question please I would be very thankful its my exam tomorrow need the explanation in urgent. THANKYOU
Q138 from Kaplan Exam Kit(September 2019 to August 2020)
on 31 january 20X8, Westwale Co disposed of a building for $450,000.The building accounted for using the revaluation model.At the date of disposal after deduction of accumulated depreciation of $90,000, the buildinghad a carrying amount of 310,000. It also had a revaluation surplus in equity of 30,000What was Westvale Co’s profit on disposal of the building for inclusion in the statement of profit and loss for the year ended 31 December 20X8?
