UJY-2 Please do not copy other answers. This is a different question. If copied from other answers I will downvote and report your account .

Q1.

Q2.

Gamma prepares financial statements to 31 March each year. The following exhibits, available on the left-hand side of the screen, provide information relevant to the question: 1. Lease of machine - information on the lease of a machine during the year ended 31 March 20X5. 2. Purchase of property - details of a property purchased during the year ended 31 March 20X5. 3. Additional information - further information regarding the financial statements of Gamma for the year ended 31 March 20X5 This information should be used to answer the question requirements within your chosen response option(s). On 1 October 20X4 Gamma began to lease a machine. The lease gave Gamma the sole right to direct the use of the machine and receive all the economic benefits arising from its use. The lease was for a five-year term, with annual rentals of $200,000 being payable in advance. The first rental was paid on 1 October 20X4 and the final rental is due for payment on 1 October 20X8. The total estimated useful life of the machine on 1 October 20X4 was ten years. There are no terms in the lease agreement that alla the lease be extended beyond the five-year term. The annual rate of interest implicit in the lease is 8%. On 1 October 20X4 when the first rental was paid Gamma debited $200,000 to profit or loss. Gamma has made no other entries regarding this lease in its draft financial statements for the year ended 31 March 20X5. 8% discount factors which may be relevant are as follows: Cumulative present value of $1 payable in: 1 year 2 years 3 years 4 years 5 years 0.926 1.783 2-577 3.312 3.993 On 1 April 20X4 Gamma purchased an overseas property on credit for 4-4 million crowns. Of the initial carrying amount, 60% of the value of the property was attributed to the buildings element. On 1 April 20X4 Gamma estimated that the useful life of the buildings element was 40 years. On 30 June 20X4 Gamma paid 4-4 million crowns to the seller. Gamma uses the revaluation model to measure property. On 31 March 20x5 Gamma estimated that the fair value of the property was 4-8 million crowns. The only entries made by Gamma in its draft financial statements regarding the purchase of the property were to record the cash paid on 30 June 20x4 as an operating expense in the statement of profit or loss. Relevant exchange rates are: Date Exchange Rate 1 April 20X4 2 crowns to $1 30 June 20X4 1-76 crowns to $1 31 March 20X5 1-60 crowns to $1 1. 2. The draft financial statements of Gamma for the year ended 31 March 20x5 show a profit after tax of $10 million. This amount is before taking account of the implications of the information in exhibits 1 and 2. On 1 April 20X4 Gamma had 70 million ordinary shares and 50 million preference shares in issue. The preference shares are irredeemable, and any preference dividends are discretionary On 1 October 20X4 Gamma made a 1 for 4 rights issue. The new shares were issued at a price of $1 per share. On 1 October 20X4 the shares of Gamma had a listed price of $1.50 immediately before the rights issue. The rights issue was fully taken up. On 31 December 20X4 Gamma paid a dividend of $3 million to its ordinary shareholders and $2 million to its preference shareholders. These were the only dividends paid by Gamma in the year ended 31 March 20X5. 3. 4. (a) Using the information in exhibits 1 and 2, explain and show how the lease of machine and purchase of property would be reported in the financial statements of Gamma for the year ended 31 March 20X5. Marks will be awarded for BOTH calculations AND explanations. entities, Beta (Note 1) and Gamma (Note 2). The draft statements of financial position of Alpha and Beta at 30 September 2018 were as follows: Alpha Beta $'000 $'000 Assets Non-current assets: Property, plant and equipment (Notes 1and 5) 775,000 380,000 Investments (Notes 1-3) 410,000 Nil -- 1,185,000 380,000 Current assets: Inventories (Note 4) 150,000 95,000 Trade receivables (Note 4) 100,000 80,000 Cash and cash equivalents 18,000 15,000 - 268,000 190,000 Total assets 1,453,000 570,000 ---- Equity and liabilities Equity Share capital ($1 shares) 520,000 160,000 Retained earnings 693,000 200,000 - Total equity 1,213,000 360,000 Non-current liabilities: Long-term borrowings 100,000 80,000 Deferred tax 60,000 45,000 Total non-current liabilities 160,000 125,000 Current liabilities: Trade and other payables 60,000 55,000 Short-term borrowings 20,000 30,000 Total current liabilities 80,000 85,000 Total liabilities 240,000 210,000 Total equity and liabilities 1,453,000 570,000 Note 1 - Alpha's investment in Beta On 1 October 2011, Alpha acquired 120 million shares in Beta and gained control of Beta on that date. The acquisition was financed by a cash payment by Alpha of $144