in January X6, Ramjet Co purchased plant and machinery costing $48,000. They also paid delivery costs of $1,500 and legal fees of $500. The plant has a useful life of 10 years and a residual value of $2,000. In January X8, the directors of Ramjet Co decided to change the depreciation method to reducing balance at 20% What is the carrying value of the plant and machinery in the statement of financial position at 31 December X8? A. $10,000 8 $24,576 C. $29,440 D. $32,320 Which two of the following statements regarding the impact of upwards revaluations is true? 12. A. Assets and profits will increase. B. Assets will increase and profits decrease. C. The appropriate double entry to record a revaluation upwards is Dr Asset Cost Valuation, Dr Accumulated Depreciation and Cr Revaluation reserve D. The appropriate double entry to record a revaluation upwards is Dr Asset Cost Valuation, Dr Accumulated depreciation, Cr statement of profit or loss Which of the following statements are true? 13. 1. Research costs can be capitalised if the company believes they are worthwhile 2. Development costs are never amortised 3. Development is the application of research findings or other knowledge to a plan or design prior to the start of commercial production or use 4. Development costs should always be capitalised per IAS 38. A. 1, 3 and 4 B. None of the above C. 3 and 4 D. 3 Which of the following costs are most likely to be included in the research and development per IAS 38 of a company investigating a new tooth whitening formula? 14. 1 Salary costs of PhD students investigating relevant chemical compounds 2. A portion of the Financial Director's salary 3. Depreciation of plant and machinery used by PhD students 4. Selling costs associated with marketing the final product. A. 1, 3 and 4 8. All of the above C 1 and 3 D. 2 and 4 35