Question 32 Simon Plc acquired a new plant on 1 April 2017 and the information relevant to the plant is as follows: $ Purchase price as per invoice 950,000 Transportation costs 25,000 Installation costs 70,000 Additional Information: The purchase agreement for the new plant specified that, the first 50% of the purchase price would be paid upon delivery on 1 April 2017 and the remaining to be paid on 1 April 2018. The present value of the amount payable on 1 April 2018 was determined to be $435,000 b. Other costs incurred on the acquisition of the above plant were paid immediately. c. In addition to the above costs incurred on 1 April 2017, an engineering firm was called in to conduct several tests to ensure that the plant function well. Simon Plc paid professional fees of $15,000 to the engineering firm and this amount had been included in administrative expenses. Samples produced in the testing were sold for $9,000 and had been recognised as other operating income. d. On 1 April 2018, a component of the plant was replaced at a cost of $50,000. The carrying amount of the old component replaced was $21,000 (cost was $30,000). I Plant is depreciated on a straight line basis at 10% per annum. e. Required: a) Calculate the initial cost of plant on 1 April 2017. (8 marks) b) Calculate the depreciation charged for the plant for the year ended 31 March 2019. (8 marks) c) Prepare extract Statement of profit or loss and Statement of financial position as at 31 March 2019. Amaral