On 1 July 2014 Alpha Ltd purchased a factory for $500,000 with an estimated useful life of 25 years, and a residual value of nil. Alpha uses the straight-line method of depreciation. During the audit for the year ended 30 June 2019, management discussed the accounting for the factory with the auditors and decided that the factory should be depreciated over a total period of 20 years. The carrying amount as at 1 July 2018 was $400,000. Required: Explain how Alpha Ltd should account for the change in the useful life of the factory in accordance with AASB 108 Accounting Policies. Changes in Accounting Estimates and Errors. No calculation is needed. Enter your answer here Q10.2 2 Points 10.2 Beta Ltd has the year end on 30 June. On 17 July 2020, Beta Ltd main fishing fleet was sunk during a freak storm. Insurance will cover the replacement of the vessels but lost sales representing $230,000 profits are not covered. Q10.2 2 Points 10.2 Beta Ltd has the year end on 30 June. On 17 July 2020, Beta Ltd main fishing fleet was sunk during a freak storm. Insurance will cover the replacement of the vessels but lost sales representing $230,000 profits are not covered. Required: Classify the above event into an adjusting or non-adjusting event. Explain the reason and illustrate the accounting treatment of the event in accordance with AASB 110 Events after the Reporting Period. Enter your answer here Q10.3 2 Points Gamma Ltd has the year end on 30 June. On 29 July 2020. Gamma was informed by its largest customer, Contents Ltd, that it was having cash flow difficulties and would struggle to pay its large outstanding account balance with Gamma. No payments had been received from Contents since early June. Right before the year-end, the CEO of Contents told the Chairman of Gamma that it would not be necessary to adjust the receivable balance at 30 June 2020, as Contents had always paid in the past and he is confident that they will do so in the future. Gamma Ltd has the year end on 30 June. On 29 July 2020, Gamma was informed by its largest customer, Contents Ltd, that it was having cash flow difficulties and would struggle to pay its large outstanding account balance with Gamma. No payments had been received from Contents since early June. Right before the year-end, the CEO of Contents told the Chairman of Gamma that it would not be necessary to adjust the receivable balance at 30 June 2020, as Contents had always paid in the past and he is confident that they will do so in the future. Required: Classify the above event into an adjusting or non-adjusting event for Gamma Ltd. Explain the accounting treatment for the event in accordance with AASB 110 Events after the Reporting Period