1.O'Briens Construction Ltd exchanged equipment that had a book value of $40430 for a truck that had a book value (in the other entity's books) of $39522. The fair value of the equipment is $42042. Further cost incurred to prepare the truck for use by O'Briens was $9229 for delivery and $1792 for registration. What is the acquisition cost of the truck?

A. 53063 B. 48751 C. 51451 D. 51271

2.

Jameson Limited was involved in a mining exploration business. It commenced a project to design more efficient opal detecting equipment. The following expenditures occurred during the financial year ended 30 June 2022:

researchers salary $67965;

research consumables $10344;

re-development of the detecting equipment $7440;

final adjustments to the detecting equipment $1556.

The amount to be capitalised by this company as an intangible asset, for the 2022 financial year, is:

A.

87305

B.

78309

C.

19340

D.

8996

Clear my choice

2.

Footloose Limited acquired furniture and fittings on 1 July 2020 for $51953. The estimated useful life of the furniture and fittings at acquisition date was 9 years and the residual value was $0. Footloose Limited uses a straight line method for depreciation calculations. The company sold all the furniture and fittings on 1 January 2022 for $59792. How much is a gain (+) or a loss (-)?

A.

19384

B.

16498

C.

13612

D.

7839

3.

AASB 136 Impairment of Assets requires which of the following disclosures for each class of assets:

I The line item(s) of the statement of profit or loss and other comprehensive income in which impairment losses are included.

II The amount of reversals of impairment losses during the period.

III The amount of impairment losses recognised directly in other comprehensive income.

IV The beginning and ending balances of any accumulated impairment account.

Select one:

A.

II and IV only

B.

I, II and III only

C.

I, II, III and IV

D.

IV only

4.

Which of the following assets is regarded as meeting the identifiability criteria for recognition as an identifiable intangible asset that may be acquired in a business combination?

Select one:

A.

Newspaper mastheads.

B.

Outstanding credit ratings

C.

Customer service capability

D.

Presence in geographic location