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Pls answer the questions with your detailed explanations, it's much appreciated! 3 Y purchased some plant on 1 January 20X0 for $38,000. The payment for
Pls answer the questions with your detailed explanations, it's much appreciated!
3 Y purchased some plant on 1 January 20X0 for $38,000. The payment for the plant was correctly entered in the cash book but was entered on the debit side of the plant repairs account. Y charges depreciation on the straight line basis at 20% per year, with a proportionate charge in the years of acquisition and disposal, and assuming no scrap value at the end of the life of the asset. How will Y's profit for the year ended 31 March 20X0 be affected by the error? Understated by $30,400 Understated by $36,100 Understated by $38,000 Overstated by $1,900 (2 marks) 4 B acquired a lorry on 1 May 20X0 at a cost of $30,000. The lorry has an estimated useful life of four years, and an estimated resale value at the end of that time of $6,000. B charges depreciation on the straight line basis, with a proportionate charge in the period of acquisition. What will the depreciation charge for the lorry be in B's accounting period to 30 September 20X0? $3,000 $2,500 $2,000 $5,000 (2 marks) .5 At 31 December 203 Q, a limited liability company, owned a building that had cost $800,000 ten years ago. It was being depreciated at 2% per year. On 31 December 203 a revaluation to $1,000,000 was recognised. At this date the building had a remaining useful life of 40 years. What is the balance on the revaluation surplus at 31 December 203 and the depreciation charge in the statement of profit or loss for the year ended 31 December 204Step by Step Solution
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