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Information relevant to questions 106–110
The carrying amount of Gosford Co's property, plant and equipment at 30 June 2018 was $620,000 and the tax written down value was $460,000.
The following information relates to the year ended 30 June 2019:
The corporate income tax rate is 20%. The current tax charge was calculated for the year as $60,000.
A. Property, plant and equipment
B. Development expenditure
Information relevant to questions 111–115
Hunters Co increased the operating capacity of its plant on 1 April 2019. On the guidance of the finance controller, Hunters Co entered into an agreement to lease the plant from the manufacturer.An initial payment is made on 1 April 2019 and the present value of the future lease payments at that date is $347,000. Payments in respect of the lease are made in advance and are $200,000 per annum, beginning on 1 April 2020. The lease does not transfer ownership of the plant to Hunters Co by the end of the lease term and there is no purchase option available. The rate of interest implicit in the lease is 10%.
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