I am having issues with q 2 and q3.
For q2 I cannot understand how to get to result $3333 if our total expenditure for that year was $18000.
For q3 I got $20000 as result.
Because between Carrying amount $25000, VIU $18000 and NSP $21000 the choice is NSP value. From that I removed 3months depreciation 21000x3/(5x12)+3) (5 years of remaining useful life. What am I doing wrong, please?
Ask the Tutor ACCA FR
Chapter 26 - practice questions
10y ago#13 months in a quarter, 2 months from 31 May to 31 July, $5 million per quarter, $1,666,667 per month, 2 months, $3,333,333
For question 3, there is a mistake in the answer that is identified as correct. The correct answer should be $19,950
You are correct to select nsp $21,000 as the appropriate choice as at 1 March, 2014 and this needs a further 3 months' amortisation. But the useful file has been re-estimated as being 5 years from the date of the review
So, $21,000 / 5 / 4 = $1,050 and that will reduce the carrying value on SoFP to $19,950
"What am I doing wrong, please?" - you are incorrectly deducting the $3 million amortisation from the pre-reassessment period. That is automatically adjusted when you made your choice between $25,000 and $21,000
OK?
Yes, thank you!
10y ago#3You're welcome
Sign in to reply to this topic.