Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 21, 2024

On 30 June 2020, Lala Limited had an item of plant with an original cost of $120,000 and accumulated depreciation of $36,000. At this date,

On 30 June 2020, Lala Limited had an item of plant with an original cost of $120,000 and accumulated depreciation of $36,000. At this date, the fair value of the plant was $90,000. What is the carrying amount of the plant on 30 June 2021? Lala Limited depreciates all items of PPE at 20% per annum straight-line method.

a. $60,000

b. $66,000

c. $64,286

d. $58,286

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

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

Corporate Finance The Core

Authors: Jonathan Berk, Peter DeMarzo

4th Global Edition

1292158336, 9781292158334

Students also viewed these Accounting questions

Question

Define positive thinking and cite its benefits.

Answered: 1 week ago

Question

★★★★★

The Diversified Portfolio Corporation provides investment advice to customers. A condensed income statement for the year ended December 31, 2018, appears below: Service...

Answered: 1 week ago

Question

★★★★★

Togos Sandwiches acquired equipment on April 1, 2015, for $17,500. The company estimates a residual value of $1,900 and a five-year service life. Required: Calculate depreciation expense using the...

Answered: 1 week ago

Question

★★★★★

sestion 4 The most comprehensive means of financial forecasting is: ot yet swered Select one: arked out of 1 O a. Done with a short term time horizon Flag question O b. Through the use of securities...

Answered: 1 week ago

Question

★★★★★

Mesa Telcom has three divisions, commercial, retail, and consumer, that share the common costs of the company's computer server network. The annual common costs are $2,880,000. You have been provided...

Answered: 1 week ago

Question

★★★★★

The Street Division of Labrosse Logistics just started operations. It purchased depreciable assets costing $37.6 million and having a four-year expected life, after which the assets can be salvaged...

Answered: 1 week ago

Question

★★★★★

Imagine you consume two goods, K and L, and your utility function is U = K1/2 1/4. Your budget is M = 630; PK = $10; PL = $30. Now imagine PK increases to $25. What is the new optimal K?

Answered: 1 week ago

Question

★★★★★

I ran a regression of height of drinker and consumption of glasses of wine. I thought that the height (in metres) would be a predictor of wine consumption. Turns out I was right! The p value for...

Answered: 1 week ago

Question

★★★★★

A research proposal outline is designed to jumpstart the research process and allow time to receive feedback on your ideas before submitting the Research Proposal benchmark assignment in Topic 7. Use...

Answered: 1 week ago

Previous Question Next Question