On 1 January 2020, Rotuma Ltd held monetary assets of $100,000 (including $40,000 cash) and monetary liabilities of $80,000. The CPI was 110 and the inventory index was 120. The firms equity consisted of Capital $150,000 and Retained Profits $30,000. On 31 December 2020, Rotuma Ltd held monetary assets of $120,000 (including $10,000 cash) and monetary liabilities of $90,000. The CPI was 113 and the inventory index was 125. On 1 January 2017, Rotuma Ltd purchased a machine for $300,000. The machine is depreciated over 5 years on a straight-line basis with no residual value. The machine had a current cost of $320,000 on 31 December 2019 and $340,000 on 31 December 2020. Required i. Calculate the gain or loss on monetary items for 2020, using CCA (5 marks) ii. Calculate back-log depreciation on the machine for 2020, using CCA (3 marks) iii. Calculate the price level adjustment for 2020, using exit pricing (2 marks)

Need Correct Answers ASAP