PLEASE !!
16. On 1 October 2018, Xplorer commenced drilling for oil from an undersea oilfield. The extraction of oil causes damage to the seabed which has a restorative cost (ignore discounting) of $10,000 per million barrels of oil extracted. Xplorer extracted 250 million barrels of oil in the year ended 30 September 2019. Xplorer is also required to dismantle the drilling equipment at the end of its five-year licence. This has an estimated cost of $30 million on 30 September 2023. Xplorer's cost of capital is 8% per annum and $1 has a present value of 68 cents in five years' time. What is the total provision (extraction plus dismantling) which Xplorer would report in its statement of financial position as at 30 September 2019 in respect of its oil operations? (2 Points) $22.900,000 $24,532,000 $34.900,000 $4,132,000 17. An entity purchased property for $6 million on 1 July 2014. The value of the land was $1 million and the buildings $5 million. The expected life of the building was 50 years and its residual value nil. On 30 June 2017, the property was revalued to $7 million (land $1.24 million, buildings $5.76 million). On 30 June 2019, the property was sold for $6.8 million. What is the gain on disposal of the property that would be reported in the statement of profit or loss for the year to 30 June 2019?* (2 Points) Gain $40,000 Loss $200,000 Gain $1,000,000 Gain $1,240,000 18. Amco Co carries out research and development. In the year ended 30 June 2019, Amco incurred costs in relation to project X of $750,000. These were incurred at the same amount each month up to 30 April 2019, when the project was completed. The product produced by the project went on sale from 31 May 2019. The project had been confirmed as feasible on 1 January 2019, and the product produced by the project was expected to have a useful life of five years. What is the carrying amount of the development expenditure asset as at 30 June 2019? (2 Points) $nil $300,000 $295,000 $725,000 19. Which ONE of the following would require a provision for a liability to be created by BW at its reporting date of 31 October 2019? * (2 points) At the date, BW is negotiating with its insurance provider about the amount of an insurance claim that it had filed. On 20 November 2019, the insurance provider agreed to pay $200,000. A customer is suing BW for damages alleged to have been caused by BW's product. BW is contesting the claim and, at 31 October 2019, the directors have been advised by BW's legal advisers it is very unlikely to lose the case. BW makes refunds to customers for any goods returned within 30 days of sale, and has done so for many years. The government introduced new laws on data protection which come into force on 1 January 2020. BW's directors have agreed that this will require a large number of staff to be retrained. At 31 October 2019, the directors were waiting on a report they had commissioned that would identify the actual training requirements. 20. Which of the following factors is a reason why key staff are unable to be capitalised as an intangible asset by an entity? (1) They do not provide expected future economic benefits (ii) They cannot be controlled by an entity (iii) Their value cannot be measured reliably (iv) They are not separable from the business as a whole * (2 Points) (ii) and (iii) All of them (ii) and (iv) (ii), (ii) and (iv)
