Asset Date of Acquisition Depreciation Rate Current Cost Selling Price

01.01.18 31.12.18 01.01.18 31.12.18

Equipment 01.01.15 10% 300, 000 330, 000 250, 000 275, 000

Land 01.01.14 N.A 200, 000 250, 000 220, 000 260, 000

Vehicle 01.01.18 20% 100, 000 80, 000 90, 000 70, 000

Required

a) Calculate depreciation on the vehicle for 2018 using

(i) current cost

(ii) exit pricing

b) Calculate the closing balance for each class of non-current asset (after deducting accumulateddepreciation) using

(i) current cost

ii) exit pricing

c) With reference to the non-current assets in the table above, briefly outline one benefit and one challenge of applying fair value measurement in a Pacific Island Country like Fiji.