QUESTION 5 A company pays 70,000 to replace a major component of a factory machine. The faulty component that is replaced is sold for 8,000. The carrying amount of the machine just before this replacement occurs is 420,000, of which 15,000 relates to the faulty component that is being replaced. The revised carrying amount of the machine after the replacement occurs and the profit or loss on disposal of the faulty component are: A. Carrying amount 490,000, Loss 7,000 B. Carrying amount 475,000, Profit 8,000 O C. Carrying amount 490,000, Loss 15,000 OD Carrying amount 475,000, Loss 7,000 QUESTION 6 Which of the following is not an example of intra-group balance? O A. A loan issued by a subsidiary to its parent company O B. A loan made by a subsidiary to another subsidiary within the same group C. A trade payable in the subsidiary's account, owing to a common supplier for both the parent and subsidiary company O D. A trade payable owing to a parent by its subsidiary company