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Chapter 25 Practise question MCQ 3 .
I am not sure how we arrived at the grant as $144?
It’s $1,000,000 x 60% x 60% x 40%
60% is the remainder of the grant after the first year = $600,000 at 30 June, 2013
60% x $600,000 is the remainder of the grant after the second year = $360,000 at 30 June, 2014
40% x $360,000 is the amount of the grant that will be credited to the statement of profit or loss in the year to 30 June, 2015
Ok?
I understood the first two parts wherein we are multiplying 1,000,000 by 60% for 2013 and 2014.. But I fail to understand the last part which is multiplying by 40%.
What I am assuming is that 600,000 and 360,000 is the carrying value of grant after deducting depreciation on it. But nor sure why are we multiplying by 40% in 2015.
Oh yes ! I apologize for such stupid queries.. Exams round the corner.. stress has taken over me..Sorry !
And thank you so much for helping out with my queries in such a quick turnaround time.. 🙂
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