Please ans the whole of qn 3..

Tutorial 2 Page 2 of 3 Question 3 LAS36 (Ex 7.7) Spear Led reported the following information in its statement of financial position at 30 June 2016: Plant $650,000 Accumulated depreciation - plant (150,000) Intangible assets 300,000 Accumulated amortisation (100,000) Land 300,000 Total non-current assets 1,000,000 Cash 50,000 Inventories 180,000 Total current assets 230,000 Total assets $1,230,000 Liabilities 150.000 Net assets $1.080.000 At 30 June 2016, Spear Ltd analysed the internal and external sources of information that would indicate deterioration in the worth of its assets. It determined that there were indications of impairment. Spear Led calculated the recoverable amount of the assets to be $980,000. Required Compute the impairment loss and prepare the necessary journal entry(ies) to allocate the impairment loss occurring at 30 June 2016. 2/3 Tutorial 2 Page 3 of 3 Question 4 LAS10 Orchid plc's financial year end is 30 June 2017. On 2 August 2017, there is a fire at Orchid pic's factory, destroying the factory completely. The loss to the company due to the fire is E850,000 which is material for the company. On 10 July 2017, Orchid plc purchased an office at a cost of $8,000,000. The purchase was partly funded through the issue of $4,800,000 of 6% debentures on 2 July 2017. Since the acquisition occurred so close to the year end, the company accountant wants to include the office and the debentures in the financial statements for the year ended 30 June 2017. The office has an expected useful life of 40 years