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Hi mike
The solution doesn’t include the depreciation on the plant on the trial balance (not the one manufactured ) as far as I can see
Would this entry be
128000-32000=98000@12.5%=12250
Dr dep expense (cost of sales)
Cr accum dep plantCan you also advise the treatment of the investments held at fair value through profit and loss (if any)
Many thanks
Hugh
The depreciation on the plant IS included! However, it has been shown as 24,000 and should be 12,000
Your calculation is (almost) unforgivable! Let me ask you this ….. What is 8 – 2? Is it 8?
“How do you treat investments held at fair value through profit or loss?”
There’s a clue in the title “fair value through profit or loss”
Do I need say more?
Ok cheers I tried to do the 128-32 in my head and I got it wrong, very careless by me.
Apologies I am sure this is in your notes can you advise the title of the chapter?
Anyway I found this on Google and it explains it all cheers mike
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