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b. Supa Inc. is considering plans A and B for financing their new Systems project of OMR 6 million. Plan A involves issuance of 250,000

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b. Supa Inc. is considering plans A and B for financing their new Systems project of OMR 6 million. Plan A involves issuance of 250,000 shares of common stock at the current market price of OMR 2 per share. Plan B involves issuance of OMR 5 million, 8% bonds at face value. Income before interest and taxes on the new plant will be OMR2.5million. Income taxes are expected to be 20% Supa, Inc. currently has 100,000 shares of common stock outstanding. 200 000 Advice Supa Inc. as to which plan would be better and why? (Answer should show clear steps and calculations). (6 marks) (1) "The sale of an asset for disposal purposes is like a regular asset sale and a proper accounting treatment is required in the books of accounts." a. Explain with example the capital nature and revenue nature expenses with reference to International Accounting Standard - Property Plant and Equipment (IAS 16)? (4 marks) b. Jet Co. purchased a machine on 1 July 2017 at a cost of OMR51,000. The machine had an estimated salvage value of OMR3,000 and a life of eight years. The machine was sold for OMR48,600 on 31 December 2019, the last day of the accounting year of the business. To make the sale, the business had to incur dismantling costs and costs of transporting the machine to the buyer's premises. These amounted to OMR1,200. The business uses the straight-line method of depreciation. What was the gain or loss on disposal of the machine? t sure. (Answers should show clear steps and calculations). (6 marks)

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