32. Basod on the information in the previous question (31), prepare the entryinatries to Becord the depreciation using the straight-line method at the end of the first year. 33. Based on the information in question (31). prepare the entryientries to recard the interest expense at the end of the first year. 34. An entity sells domestic appliances such as washing machines. These goods retall at $500 eoch and are sold with a ono-yost guarantee. Undor the lerms of the guarantee if the machine needs to be repalred then the entity will do so at no charge to the customer, In the enthy's experience 20% of machines soid do require some lorm of repir at an average cost of 550 . The entity has sold 200 machines. You may nssume that the repoirs sre porformed ono year after the sale and that the prosent valuo for $1 after 1 year at rato of 10% equals 0.909. Caleulate any provision roquired that arises under the guarantee. 35. Warmington Ple produces a rango of children's toys and markets and sells them undor its intemally developed brand, Kidz Toys. The brand is now highly respected, and the products are regarded as 'must have' toys. On 1 duly 20x3 Fraser Ple acquired the whole of Warmington Ple for E50 malion. At this date, a beand voluation expert valued the KidzToys braind at E15 million on the basis of a useful lise of 5 years. Other net astets were doarned to have a fair value of 925 million. Compute the goodwill, if any, in the question. Page 10 of 10 32. Basod on the information in the previous question (31), prepare the entryinatries to Becord the depreciation using the straight-line method at the end of the first year. 33. Based on the information in question (31). prepare the entryientries to recard the interest expense at the end of the first year. 34. An entity sells domestic appliances such as washing machines. These goods retall at $500 eoch and are sold with a ono-yost guarantee. Undor the lerms of the guarantee if the machine needs to be repalred then the entity will do so at no charge to the customer, In the enthy's experience 20% of machines soid do require some lorm of repir at an average cost of 550 . The entity has sold 200 machines. You may nssume that the repoirs sre porformed ono year after the sale and that the prosent valuo for $1 after 1 year at rato of 10% equals 0.909. Caleulate any provision roquired that arises under the guarantee. 35. Warmington Ple produces a rango of children's toys and markets and sells them undor its intemally developed brand, Kidz Toys. The brand is now highly respected, and the products are regarded as 'must have' toys. On 1 duly 20x3 Fraser Ple acquired the whole of Warmington Ple for E50 malion. At this date, a beand voluation expert valued the KidzToys braind at E15 million on the basis of a useful lise of 5 years. Other net astets were doarned to have a fair value of 925 million. Compute the goodwill, if any, in the question. Page 10 of 10
