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The business adopts a date of 31 December as its year end.The car was traded in for a replacement vehicle in August 20X6 at an agreed value of $5,000.It has been depreciated at 20% per annum on the reducing balance method, charging a full year's depreciation in the year of purchase and none in the year of sale.What was the profit or loss on disposal of the vehicle during the year ended December 20X6?
What was the profit or loss on disposal?
Assuming no further revaluations take place, what is the balance on the revaluation surplus at 31 March 20Y9?
At the date of purchase, the item of plant and equipment had an estimated useful life to the business of five years and an estimated residual value of $3,000. This item of plant was traded in for a replacement item on 30 December20X9 at an agreed valuation of $5,000.
It has been depreciated at 20% per annum on a straight‐line basis, with a pro‐rated charge in the year of acquisition and disposal.
Calculate the profit or loss on disposal of the item of plant.
What is the carrying amount of the asset at 31.12.X9?
Statement 1 When an item of property, plant and equipment is revalued, it is compulsory to make the annual transfer of excess depreciation within equity.
Statement 2 If the revaluation model is used for property, plant and equipment, all items of property, plant and equipment must be subject to revaluation.
When an entity has revalued a non‐current asset, it is (Option 1)…………………....to account for excess
What accounting entries should Wrapping Co post to make the annual transfer of ‘excess depreciation’?
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