Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

TRIAL QUESTION 130 2 Club Ae Lo Accm 2013 Acom Trade Trade ww2018 190 De The following information is relevant The directors had the leasehold

image text in transcribed
TRIAL QUESTION 130 2 Club Ae Lo Accm 2013 Acom Trade Trade ww2018 190 De The following information is relevant The directors had the leasehold property valued at $24,000 on 1 January 2018 by an independent surveyor . The directors wish to incorporate this value into the financial statements. The property was originally purchased 4 years ago and is being depreciated over its original useful economic life of 20 years which has not changed as a result of the revaluation, BB lid does not make a transfer to retained earnings in respect of excess amortisation. The revaluation gain will create a deferred tax liability (see note (1) Plant and equipment is being depreciated at 20% per annum on a reducing balance basis. All depreciation/amortisation should be charged to cost of sales A provision for income tax for the year ended 31 December 2018 of $12,000 is required. At 31 December 2018, the tax base of BB itd's net assets was $7.000 less than their carrying amounts. This excludes the effects of the revaluation of the leased property. The income tax rate of BB Ind is 30% Required: Prepare a statement of profit or loss and other comprehensive income, a statement of changes in equity for the year ended 31 December 2018, and a statement of financial position as at that date. TRIAL QUESTION 130 2 Club Ae Lo Accm 2013 Acom Trade Trade ww2018 190 De The following information is relevant The directors had the leasehold property valued at $24,000 on 1 January 2018 by an independent surveyor . The directors wish to incorporate this value into the financial statements. The property was originally purchased 4 years ago and is being depreciated over its original useful economic life of 20 years which has not changed as a result of the revaluation, BB lid does not make a transfer to retained earnings in respect of excess amortisation. The revaluation gain will create a deferred tax liability (see note (1) Plant and equipment is being depreciated at 20% per annum on a reducing balance basis. All depreciation/amortisation should be charged to cost of sales A provision for income tax for the year ended 31 December 2018 of $12,000 is required. At 31 December 2018, the tax base of BB itd's net assets was $7.000 less than their carrying amounts. This excludes the effects of the revaluation of the leased property. The income tax rate of BB Ind is 30% Required: Prepare a statement of profit or loss and other comprehensive income, a statement of changes in equity for the year ended 31 December 2018, and a statement of financial position as at that date

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing

Authors: Timothy J. Ph.D. Robertson, Jack C.; Louwers

9th Edition

0072906952, 9780072906950

More Books

Students also viewed these Accounting questions