Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On 1 January 2016, Pok Tuyu Bhd. acquired a plant at a cost of RM400,000 whose estimated useful life is ten years with no residual

image text in transcribed

image text in transcribed

image text in transcribed

On 1 January 2016, Pok Tuyu Bhd. acquired a plant at a cost of RM400,000 whose estimated useful life is ten years with no residual value. On 1 July 2018, a major component, whose initial cost is RM100,000 and which is depreciated at 10% per annum is replaced with a new component at a cost of RM120,000. There is no change in the estimated useful life of the plant. The carrying amount of the plant on 1 July 2018 after the replacement of the part will be: Select one: o a RM400,000 - depreciation RM100,000 - RM75,000 + RM120,000 = RM345,000 O b. RM400,000 - RM120,000 + RM120,000 = RM400,000 c. RM400,000 - depreciation RM80,000 + RM120,000 = RM440,000 O d. RM400,000 - RM80,000 - RM80,000 + RM 120,000 = RM360,000 The following information is about a machine in RXY Berhad. It will be repeated in TL questions: Acquisition date Cost Price (RM) Residual Value (RM) Useful Life Basis of Measurement Depreciation method Accounting year end Feb 28 2020 Machine 1 July 2019 120,000 0 5 years Cost Model Reducing balance-rate of 20% 31 December every year purchased a new component to the machines increase the performance, RM80,000 cash. As a result, the rate of depreciation was reduced to 15%. Determine the carrying amount of the machine as at 28 February 2020, after the new component was purchased: Select one: O a. RM104,400 O b. RM184,400 Engl USK . RM120,000 To SV Useful Life Basis of Measurement Depreciation method Accounting year end Feb 28 2020 5 years Cost Model Reducing balance-rate of 20% 31 December every year purchased a new component to the machines to increase the performance, RM80,000 cash. As a result, the rate of depreciation was reduced to 15%. Determine the carrying amount of the machine as at 28 February 2020, after the new component was purcha Select one: ho O a. RM104,400 O b. RM184,400 O c. RM120,000 O d. RM108,000

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

Cost Accounting Foundations And Evolutions

Authors: Michael R. Kinney, Cecily A. Raiborn

7th Edition

0324560559, 978-0324560558

More Books

Students also viewed these Accounting questions

Question

Evaluate the following: 8|7 = 8&7 = 8^5 =

Answered: 1 week ago