Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ABC Company is trading in medical equipment. The Company's financial year is ending on 31St December. ABC Company is using Cost Model to present Property,

image text in transcribed

ABC Company is trading in medical equipment. The Company's financial year is ending on 31St December. ABC Company is using Cost Model to present Property, Plant & Equipment in the balance sheet. On September 31, 2019, ABC Company purchased one equipment. The following expenses had been incurred due to the purchase of the above equipment:

A- Based on AS 16 property, Plant and Equipment" not all the expenditures above is allowed to be capitalized. Analyze the efect of capitalizing specific expenditure on the financial statements over two consecutive years (assume 2019 and 2020). B-Calculate the costs of the laser equipment that is to be captalized under IAS 16 at September 31, 2019. (6 marks) C- if the cquipment will be depreciated under Straight Line Method, and the useful life is 6 years, calculate the depreciation expense that will be presented in the income statement at 31 December, 2019. (3 marks) D-At 31s December 2018 the fair value of the laser equipment in the available market is AED 6,000, which value wil be presented in the Balance sheet at that date for the laser equipment? (1 marks)

kindly solve fast

5 s had been incurrer Description Amount AED Cost of the equipment 4,320 Discount offered 40 Refundable taxes 10 50 100 200 500 Non-refundable taxes Initial delivery and handling costs Estimated dismantling costs to be incurred after 3 years Costs incurred when equipment is left idle Insurance costs to be incurred during the shipment of the equipment to avoid damage Training for using the equipment to the factory's technician Borrowing costs to finance the acquisition of the equipment as permitted by IAS 23(Borrowing Cost) Testing costs 20 60 150 40 Proceeds from the sale of product arising from test 20 5 s had been incurrer Description Amount AED Cost of the equipment 4,320 Discount offered 40 Refundable taxes 10 50 100 200 500 Non-refundable taxes Initial delivery and handling costs Estimated dismantling costs to be incurred after 3 years Costs incurred when equipment is left idle Insurance costs to be incurred during the shipment of the equipment to avoid damage Training for using the equipment to the factory's technician Borrowing costs to finance the acquisition of the equipment as permitted by IAS 23(Borrowing Cost) Testing costs 20 60 150 40 Proceeds from the sale of product arising from test 20

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Social Work Policy Practice Changing Our Community Nation And The World

Authors: Jessica A Ritter

3rd Edition

179354087X, 9781793540874

More Books

Students also viewed these Accounting questions

Question

Draw all the enol tautomers for each of the ketones in Problem 11.

Answered: 1 week ago