Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Cherish Australia Ltd owns a vintage motor vehicle that it is contractually obligated to either give away as a prize for a lottery or sell

Cherish Australia Ltd owns a vintage motor vehicle that it is contractually obligated to either give away as a prize for a lottery or sell it back to the dealership that it purchased it from. These restrictions only apply to Cherish Australia. Applying AASB 13 Fair Value Measurement, which of the following would be the MOST APPROPRIATE fair value measurement for this asset (prices inclusive of transport costs and in the primary market)?
Group of answer choices
$0: the price that would be received when the motor vehicle is given to the lottery winner.
$190,000: the highest price that would be received if Cherish Australia sold the motor vehicle to a collector of vintage cars.
$250,000: the highest price that would be received if an expert seller of vintage cars sold the motor vehicle to a collector of vintage cars.
$150,000: the price that would be received if Cherish Australia sold the motor vehicle back to the car dealership.

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

Financial Accounting And Reporting

Authors: Barry Elliott, Jamie Elliott

5th Edition

0273651560, 978-0273651567

More Books

Students also viewed these Accounting questions