IFRS 16

The agreed contract price is $96,000. How should this price be allocated to performance obligations? Llama limited sells and equipment on January 01, 2019 which she bought on January 01,2016 for $6,000, and has been depreciating the equipment each year at 25% per annum on a straight line basis.

It trades this equipment in for new one costing $10,000 pays the supplier $9,200 in cash. What is the gain or loss on the disposal of the old equipment?

Unicorn Express Co. pays $80,000 to replace a major component of a factory machine. The faulty component that is replaced is sold for $4,000. The carrying amount of the machine before the replacement is $900,000, of which $20,000 relates to the faulty component being replaced.

Calculate the revised carrying amount of the machine after the replacement occurs and the profit or loss disposal of the faulty component.