Use the following information to answer the questions below

01.01.15 31.12.15

RC=MV Replacement Cost(RC) Market Value (MV)

Cash 50,000 ? ?

Inventory 100,000 150,000 200,000

Investments 200,000 240,000 220,000

Equipment 300,000 400,000 200,000

Accumulated Depreciation

on Equipment (150,000) ? ?

Capital 150,000 N.A. N.A.

Goodwill 50,000 ? ?

The Consumer Price Index was 100 at the start of the year and 110 at the end of the year.

Equipment is depreciated at 10% per annum with no residual value. At the start of the year, it had been depreciated by 5 years.

Required

Using exit price accounting, calculate:

i.)the value of total assets at 31 December 2015.

ii.)the price level adjustment for 2015.

Using current cost accounting, calculate:

i)Depreciation expense on equipment for 2015

ii)Back-log depreciation on equipment for 2015