- This topic has 1 reply, 2 voices, and was last updated 11 months ago by .
Viewing 2 posts - 1 through 2 (of 2 total)
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.
Congratulations to Jamil from Pakistan and Jeeva from Malaysia - Global Prize winners!
see all ACCA December 2022 Genius Hunt Competition winners >>
Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › grant question
4) X Co purchase an asset on 1st of January 20×7 at the cost of $90,000. X received a grant in relation to the cost of this asset of $15,000 it has decided to write off the grant income against the cost of the non current asset. The asset has a useful economic life of nine years.
What is the carrying amount of the asset as at 31st December 20×7?
A) $90,000
B) $80,000
C) $67,500
D) $66,667
Is my result correct?
90000/9=10000
15000/9=1667
90000-10000-15000+1667= 66667 (D)
Your answer is correct b also you can calculate like this
Asset cost. 90000
Less : govt grant. (15000)
Asset cost. 75000
Useful life. 9 year
Depreciation for the year = 75000/9 = 8333
Carrying value at the end of year = 75000-8333 = 66667