[Safiya.12345]

Dear Tutor,

Thank you so much for giving a brief explanation, but if the question had asked what revised receivables days and trade receivables would be how we will calculate that, like the 4.5*30/360*0.35 is the direct calculation of the difference between the new and the old receivables but If I wanted to take the difference by subtracting the new and the old receivables how will we calculate the new receivables

[Safiya.12345]

If we were to calculate the revised receivables will the amount be 4.5*52.5/360=656250.will this be the revised receivables ,as you said the new receivable days are correct 52.5 days as weighted average 0.25*30+0.75*60 = 52.5 days,

[Safiya.12345]

but even though
the receivables I am getting is 4500000*52.5/360=656250
now if i subtract the 750000 (750000-656250) the amount is 93750 which is not same as the amount in question that is 131250

[Safiya.12345]

Thank you so much Tutor

[Safiya.12345]

250

ans
B
Temporary investment income earned during the construction period should be netted off
the amount capitalised. However, the interest was earned prior to the period of
construction. Therefore the investment income earned should be taken to the statement of
profit or loss as investment income

I have a doubt as construction started on 1 may which is after 1 April 2017 so the interest is earned after the period of construction.
Can you please explain how they have calculated and the reason for B being the answer?
you help and feedback will be appreciated.

[Safiya.12345]

thank you so much

[Safiya.12345]

Thank you so much

[Safiya.12345]

Hello Tutor
i have a doubt that in q 13 we calculated the depreciation but in q 15 we didn’t even though in both the question fair model is used my question is
1. Why is the depreciation calculated for q1 3 even tho smithson rented their property for short term lease which is a operating lease , please rectify my approach to this questions .
2. How to recognize when an item is leased for operating and when for finance .

Your help will add immense value

[Safiya.12345]

ANS FOR 15
$1,000,000
The fair value gain of $1 million ($9m – $8m) should be taken to the statement of profit or
loss. Costs to sell are ignored and, since Croft uses the fair value model, no depreciation will
be charged on the building

[Safiya.12345]

THE previous question is Q 13
Q 15Croft acquired a building with a 40?year life for its investment potential for $8 million on
1 January 20X3. At 31 December 20X3, the fair value of the property was estimated at
$9 million with costs to sell estimated at $200,000.
If Croft Co uses the fair value model for investment properties, what gain should be
recorded in the statement of profit or loss for the year ended 31 December 20X3?

[Safiya.12345]

Six months’ depreciation should be accounted for up to 30 June 20X5, which is $100,000
expense ($10 million/50 years × 6
/12).
When the asset is transferred to investment property it should be revalued to the fair value
of $11 million. At the date that the asset’s use is changed, this gain should be recorded in
other comprehensive income and in a revaluation surplus, not in the statement of profit or
loss.
From this date, the fair value model is used. No depreciation is accounted for, but the asset
will be revalued to fair value with gains or losses going through the statement of profit or
loss. Asthere is a gain of $500,000 from June 20X5 to December 20X5, this would be included
in the statement of profit or loss.
Therefore the total net income will be $400,000, being the $500,000 fair value gain less the
depreciation expense of $100,000 for the first 6 months of the year.

[Safiya.12345]

sir 10000 is the ans for the new profit and 10000 as specific fixed costs

[Safiya.12345]

Hello Sir ,
Sir ans is 10000 as budgeted profit fot the company and 10000 is considered as the the specific fixed costs of branch z
But sir from the total fixed overheads of 100000 40 % is fixed which is 40000 and then the fixed costs are apportioned on sales value method so that would be total sales 600k and proportion for every branch is 200k that would be 2/6 so specific foxed costs of branch z should be 100k *2/6 = 13333.3 $
Can please explain me the right approach ur help will be appreciated

[Safiya.12345]

Hello Sir
I m unable to understand a. how did they calculate 36 hours as overtime
b. I didn’t understand how dividing 2 costs could give the hours paid for 372/12= 31 hours since there is 4 hours spare time how is it costed as overtime
your explanation would be helpful thank you so much .

[Safiya.12345]

The unskilled workers are guaranteed work for $420/$12 = 35 hours.
They are currently working $372/$12 = 31 hours. Therefore there are 4 hours per week
per worker spare capacity. There are 5 workers therefore 20 hours a week will have
no cost, leaving 36 hours to be paid for at time and a half.
36 × $12 × 1.5 = $648

[Safiya.12345]

Thank you so much Sir

[Safiya.12345]

Thank you so much sir

[Safiya.12345]

A
The options are:
Agency 600 × $9/hr = $5,400
Internal transfer 600 × (7 + 3) = $6,000
Hire new $1,200 + (600 × $6/hr) $4,800
Cleverclogs would select the lower of the costs and so this is the relevant cash flow sir for internal transfer shouldn’t it be 600 *9+600*3,
(600*(9+3)) because 7 dollars is the existing cost it would be incurred irrespective of the project taken or not

[Safiya.12345]

Sir answer is 11600
10300+500+800
sir why are we adding 500 and 800 like 10300 we would get if I dispose the machine but why are we adding 500 and 300 that is the amount to pay if I would use the money

[Safiya.12345]

thank you so much sir

[Safiya.12345]

Hello sir ,
Could you please explain the ans i m unable to get the ans shouldn’t the rent and rates be allocated and apportioned based on floor area ,
Ur help and explanation would be really helpful

[Safiya.12345]

Thank you so much sir

[Safiya.12345]

OK sir thank you so much ,sir if this question was based on additive model then the ans would have been 480

[Safiya.12345]

But sir here they are using multiplicative model so how is (10/100×470) added shouldn’t it be mulitiplied

[Safiya.12345]

Thank you so much sir ?

[Author]

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