Hi, I need help with the question below:-
Ar 30th Sept 20X2, the following balances existed in the records of Lambda:
Plant and Equipment
Cost $860,000
Accumulated depreciation $397,000
During the year ended 30th September 20x3,plant with a written down value of $37000 was sold for $49000.The plant had originally cost $80000.Plant purchased during the year cost $180,000. It is in the company's policy to charge a full years depreciation in the year of acquisition of an asset and none in the year of sale, using a rate of 10% on the straight line basis.
What net amount should appear in Lamdba's statement of financial position at 30 September 20X3 for plant and equipment?
Ar 30th Sept 20X2, the following balances existed in the records of Lambda:
Plant and Equipment
Cost $860,000
Accumulated depreciation $397,000
During the year ended 30th September 20x3,plant with a written down value of $37000 was sold for $49000.The plant had originally cost $80000.Plant purchased during the year cost $180,000. It is in the company's policy to charge a full years depreciation in the year of acquisition of an asset and none in the year of sale, using a rate of 10% on the straight line basis.
What net amount should appear in Lamdba's statement of financial position at 30 September 20X3 for plant and equipment?