Burger Queen Ltd owns a machine used the production of burger patties. Due increase in the maintenance costs of this machine, the directors of Burger Qu to replace the old machine with a new machine. Details of the old machine ar

Cost price R

Useful life

Residual val R

Purchase price $(1$ April $2021)$

Nil

$60000$

Assembly and installation $(1$ April $2021)$

On $1$ September $2022,$ Burger Queen Ltd purchased a new machine at a cost of R This new machine was available for use, as intended by management, on $1$ March expected useful life of the new machine is determined to be $6$ years and the new has a residual value of R$50000.$

On $28$ February $2023,$ the old machine was sold for R$500000$ cash. The remaining

and residual value of both machines re

Calculate the amount that is to be disclosed in the property, plant and equipment note of Burger Queen Ltd as derecognition of the old machine for the year ended $31$ December $2023.$

a$.500000$

b$.405000$

$.592000$

Od$.528000$

$?$

Question $2$

Which of the following costs can, in terms of IAS $16.$ be capitalised to the cost of an asset

$20\backslash$deg C Sunny

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