Multiple choice

13. a b A parent entity sold a depreciable non-current asset to a subsidiary entity for $5 600. The asset originally cost $6 000 and at the date of sale accumulated depreciation was $1 000. The amount of the unrealised gain on sale to be eliminated is: $5 600. $1 000 $600. $400. d 14. a On 1 January 2014 Antique Furniture Importers acquires furniture from a supplier in Europe. The furniture is shipped f.o.b. from Brussels on 1 January 2014. The cost of the furniture is 600 000. The amount has not been paid at 31 January 2014. Exchange rates are as follows: 1 January 2014 AS1.00 = 0.59 31 January 2014 A51.00 = 0.46 What is the amount payable at 1 January and 31 January 2014 in Australian dollars (rounded to the nearest whole A$)? Did the Australian dollar strengthen or weaken? 1 January 2014 $246 000 31 January 2014 S324 000 The Australian dollar weakened 1 January 2014 151 016 949 31 January 2014 S1 304 348 The Australian dollar weakened. 1 January 2014 151 463 415 31 January 2014 S1 111 111 The Australian dollar weakened. 1 January 2014 18354 000 31 January 2014 5276 000 The Australian dollar strengthened. b d 15. a b If an Australian company enters a forward exchange contract to buy US$15 000, then which of the following applies? The company's contractual obligation (at the forward rate) and contractual right at the spot rate) are settled on a net basis. The company has a contractual obligation to deliver foreign currency at the settlement date and that obligation is realized at the spot rate. The company has a contractual right to receive US$15 000 at the settlement date and that right is an asset fixed in AS at the forward rate. The company's forward contract will act as a hedge against a recognized asset. d