BUUU.Fe vence was depreciated al we salne rate as me wear allowance for Income tax purposes. At 01 March 2015 (the beginning of the current reporting period) the board decided that certa machinery used in the production process with a historical cost and carrying amount of R 1,74 and R 1,015,000 should be revalued. The gross replacement cost was estimated to be R 2,400. the estimated useful life and residual values were considered to be 10 years and R 180,000 respectively. The machinery was depreciated on a straight-line basis to reduce the carrying am its residual value of zero over an estimated useful life of 6 years. Merket value Os Question: (a) Discuss the difference, if any, between the revaluation and fair Value methods of measur Future, eco carrying amounts of assets in the financial statements: benigils [4 marks) "Show Hizbulin profita loss (b) Advise the board how the evaluation surplus should be treated over the remaining usef the machinery in the financial statements to comply with the financial reporting standards. marks] to lo seloon eomma All members of the board were given the right of taking goods for personal and household consumption at a maximum cost of R 9,000 per month - this was not included in the remunera package as it was the family tradition and business practice. Any goods taken in excess of the stipulated maximum amount was claimed from their salaries. Furthermore, the members of the were granted free use of the company's vehicles (registered in the name of the company but tt members had exclusive use of the vehicles). The cost of running and maintaining the vehicles - responsibilities of the members except for the senior members who were the immediate childr the founding father. The Professional Accounts of the company presented the following schedule to the board as pa .--| BUUU.Fe vence was depreciated al we salne rate as me wear allowance for Income tax purposes. At 01 March 2015 (the beginning of the current reporting period) the board decided that certa machinery used in the production process with a historical cost and carrying amount of R 1,74 and R 1,015,000 should be revalued. The gross replacement cost was estimated to be R 2,400. the estimated useful life and residual values were considered to be 10 years and R 180,000 respectively. The machinery was depreciated on a straight-line basis to reduce the carrying am its residual value of zero over an estimated useful life of 6 years. Merket value Os Question: (a) Discuss the difference, if any, between the revaluation and fair Value methods of measur Future, eco carrying amounts of assets in the financial statements: benigils [4 marks) "Show Hizbulin profita loss (b) Advise the board how the evaluation surplus should be treated over the remaining usef the machinery in the financial statements to comply with the financial reporting standards. marks] to lo seloon eomma All members of the board were given the right of taking goods for personal and household consumption at a maximum cost of R 9,000 per month - this was not included in the remunera package as it was the family tradition and business practice. Any goods taken in excess of the stipulated maximum amount was claimed from their salaries. Furthermore, the members of the were granted free use of the company's vehicles (registered in the name of the company but tt members had exclusive use of the vehicles). The cost of running and maintaining the vehicles - responsibilities of the members except for the senior members who were the immediate childr the founding father. The Professional Accounts of the company presented the following schedule to the board as pa .--|