Q1 An entity that is the parent of a group has the following properties:

(a) A property that is leased to a non-group company

(b) A property that is leased to a subsidiary

(c) A property that is used by the parent as its Head Office but is located in an area where a substantial capital appreciation might be expected

(d) Land that has been purchased by the parent but whose future use has not yet been determined.

Which of the properties would be classified as investment properties under IAS 40 Investment Property?

Group of answer choices

(a), (b) and (c)

(a), (c) and (d)

(a) and (d)

(a) and (b)

Q2

An entity paid 20 million for a new furnace that had a total estimated useful economic life of 20 years. Prior experience has suggested that the lining of the furnace will require replacing every 5 years and the current cost of such replacement is approximately 5 million.

What is the annual depreciation charge in respect of the furnace?

Group of answer choices

1,750,000

1,500,000

750,000

1,000,000