ASH Muscat features stunning luxury suites with views of the ocean, mountain, garden or city from...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
ASH Muscat features stunning luxury suites with views of the ocean, mountain, garden or city from a spacious balcony. Exclusive amenities include living area with sofa, king bedroom, generous work area, complimentary high-speed Internet access, and marble bath with tub and walk-in shower. Master suite features four-poster king bed with choice of king or twin beds in additional room. Sofa and king sizes beds are being imported from Thailand and incurred costs of import duties, Luxury tax, carriage cost other than the buying price of furniture. A maintenance contract for this furniture was signed with an Omani company for OMR 4000 per year and further repainting cost of OMR 5000 will incur annually. ASH Muscat on 1 January 2015, purchased new hotel furniture and room amenities at a cost of OMR 200000. For the purpose of accounting for depreciation, the company has decided the following: i. The room amenities part was OMR 50000 and this would not be depreciated. ii. The room furniture part was the remaining OMR 150000. This would be depreciated by the straight-line method to a nil residual value over 20 years. After five years of trading, on 1 January 2020 ASH Muscat decides that the company hotel furniture and room amenities are now worth OMR 300000, divided into: hotel furniture OMR 150000 and room amenities OMR 150000. The company estimates that the hotel furniture still has a further 20 years of useful life remaining. ASH Muscat is planning to sell a part of hotel furniture for OMR 3000 on 1" January 2021. The costs of hotel furniture were OMR 15000 and depreciated 5 years out of 20 years. Question 2 a) Differentiate capital expenditures from revenue expenditures and give case related examples from the above discussion. b) Calculate the annual charge for depreciation for the first five years of the hotel furniture's life and prepare extracts of statement of financial position of hotel furniture and room amenities as at the end of each of the first five years. c) Demonstrate the impact the revaluation will have on the depreciation charge and the statement of financial position value of the hotel furniture and room amenities. d) What was the profit or loss on planned disposal assuming that the ASH Muscat uses the straight line method for depreciation? Prepare 'hotel furniture disposal account' for the year 2021. ASH Muscat features stunning luxury suites with views of the ocean, mountain, garden or city from a spacious balcony. Exclusive amenities include living area with sofa, king bedroom, generous work area, complimentary high-speed Internet access, and marble bath with tub and walk-in shower. Master suite features four-poster king bed with choice of king or twin beds in additional room. Sofa and king sizes beds are being imported from Thailand and incurred costs of import duties, Luxury tax, carriage cost other than the buying price of furniture. A maintenance contract for this furniture was signed with an Omani company for OMR 4000 per year and further repainting cost of OMR 5000 will incur annually. ASH Muscat on 1 January 2015, purchased new hotel furniture and room amenities at a cost of OMR 200000. For the purpose of accounting for depreciation, the company has decided the following: i. The room amenities part was OMR 50000 and this would not be depreciated. ii. The room furniture part was the remaining OMR 150000. This would be depreciated by the straight-line method to a nil residual value over 20 years. After five years of trading, on 1 January 2020 ASH Muscat decides that the company hotel furniture and room amenities are now worth OMR 300000, divided into: hotel furniture OMR 150000 and room amenities OMR 150000. The company estimates that the hotel furniture still has a further 20 years of useful life remaining. ASH Muscat is planning to sell a part of hotel furniture for OMR 3000 on 1" January 2021. The costs of hotel furniture were OMR 15000 and depreciated 5 years out of 20 years. Question 2 a) Differentiate capital expenditures from revenue expenditures and give case related examples from the above discussion. b) Calculate the annual charge for depreciation for the first five years of the hotel furniture's life and prepare extracts of statement of financial position of hotel furniture and room amenities as at the end of each of the first five years. c) Demonstrate the impact the revaluation will have on the depreciation charge and the statement of financial position value of the hotel furniture and room amenities. d) What was the profit or loss on planned disposal assuming that the ASH Muscat uses the straight line method for depreciation? Prepare 'hotel furniture disposal account' for the year 2021.
Expert Answer:
Answer rating: 100% (QA)
answer a Capital expenditures are for fixed assets which are expected to be productive assets for a ... View the full answer
Related Book For
Business Statistics
ISBN: 978-0321925831
3rd edition
Authors: Norean Sharpe, Richard Veaux, Paul Velleman
Posted Date:
Students also viewed these accounting questions
-
Purpleheart Trade Association was established on 1 January 2015. It reported the following income and expenditure for the year ended 31 December 2019. RM Income: Members subscription fees 20,000...
-
A. MacPro Property Bhd acquired an investment property on 1 January 2015 and measured it using the cost model. On 1 January 2018, MacPro Property Bhd changed the accounting policy and used the fair...
-
A bedroom suite costs Town & Country Furniture $5000 less 30% and 15%. The normal rate of markup on cost is 90%. The suite is marked down 30% in a Mid- Summer Sale. What is the sale price?
-
Fill in the blanks with the proper method names to deserialize an object. (Choose two.) A. writeObject in the first blank B. writeResolve in the first blank C. readObject in the first blank D....
-
What do the Cournot and Bertrand models have in common? What is different about the two models?
-
Athena Ltd. is a subsidiary located in Greece. It uses the euro for internal reporting purposes. At December 31, Year 11, the company's inventory on hand had a cost of 20,000 and a net realizable...
-
The bidask spread (I) In Table 3.14, consider the bid and ask spot quotations in dollars per pound (\($/),\) i.e. in American terms: a. Compute the bid and quotations in European terms, i.e. in...
-
Stevens Textiles's 2010 financial statements are shown below: Balance Sheet as of December 31, 2010 (Thousands of Dollars) a. Suppose 2011 sales are projected to increase by 15% over 2010 sales. Use...
-
5. In dollars and points price the 121 day SPI 200 Index put and call options with a strike price of 7275 when the S&P/ASX 200 Index is currently trading at 7278 that has a volatility of 18%pa, wh...
-
New University plans to issue a $ 2,000,000 bond. The money is to buy equipment for its physics laboratories. The bond matures in 10 years, and requires semiannual interest payments. The stated...
-
9. Processor utilization is the percentage of time that the processor spends doing useful work (such as executing arithmetic instructions). Assume that an individual process in a system spends about...
-
There are five team dysfunctions that can and mostly likely do impact a project are: absence of trust, fear of conflict, lack of commitment, avoidance of accountability, and inattention to results...
-
A company has monthly fixed costs of $32,500 for its facilities and it costs $280 per unit for each unit that it produces. How many units must be company produce to have an average cost per unit of...
-
1. Explain the given below statements (3 marks) with an example. a) IF statment b) While Statement c) For Statement 2. Write a python program to print the Multiplication table of 5. (3 marks) output:...
-
Assume that Hospital X purchased equipment for $ 6 0 0 , 0 0 0 cash on April 1 st ( the first day of its fiscal year ) . This equipment has an expected life of 1 0 years. The salvage value is 1 0...
-
provide an abstract, an introduction, and a conclusion for the following: What will make you stand out in your field? Include the following in your discussion: Present a comprehensive plan for...
-
On January 1, 2020, Wildhorse Co., a calendar-year company, issued $1880000 of notes payable, of which $470000 is due on January 1 for each of the next four years. The proper balance sheet...
-
The polar coordinates of a point are given. Find the rectangular coordinates of the point. (-1, - /3)
-
A company is sued for job discrimination because only 19% of the newly hired candidates were minorities when 27% of all applicants were minorities. Is this strong evidence that the companys hiring...
-
The analyst in Exercise 8 wants to know if the mean purchase amount of all transactions is at least $40. a) What is the null hypothesis? b) Is the alternative one- or two-sided? c) 'What is the value...
-
Gallup reported in March 2012 that 73% of American investors say that a politically divided federal government is hurting the U.S. investment climate a lot. Is there any evidence that the percentage...
-
On1 January 2006, F Limited commenced business selling goods on hire purchase. Under the _ terms of the agreements, an initial deposit of 20 per cent is payable on delivery, followed by four equal...
-
The financial statements of J. Foot Ltd are made up to 31 March in each year. Work on Contract 349 started on 1 July 2006 and completed on 31 January 2008. The total contract price was 580,000, but a...
-
Dundas Limited purchased a machine under a hire purchase agreement on 1 January 2008. The agreement provided for an immediate payment of 2,000, followed by five equal instalments of 3,056, each...
Study smarter with the SolutionInn App