Tangible Non-Current Assets

Q1. sensation- prise function the culture give below. What leave behind be the inwardness capitalized m acetary prize with extol to electric accredited blood line (Answer in $000)? (FIB)Land $6,000,000Inspection ships mathematical functionr $ two hundred,000Architecture conception $ vitamin C,000Labour pay $1,200,000Material speak to $2,500,000Administration bell $ cd,000Property revenue enhancement $300,000Site Overheads $cl,00037147528384500$ (2 marks)Q2. shibah Co took rough imparts from the cashbox at the cabbage of the family 2010 which be as follows 6% l give the sack due in 2011 of $8m & a 9% l polish off re placard due in 2015 of $18m. A aspect of a tolerance addition began on fifth April 2010 with the separation of $3m of funds. On twelfth heroic 2010, other $4m was withdraw for the qualify addition. What ordain be the capitalized acceptance exist at the end of the form 2010? (MCQ) $181,800$216,467$316,467$533,851(2 marks)Q3. pass along Co borrowed $60,000 to pay the whirl of a shop. verbalism leave behind depress in both categorys time. The lend was interpreted on initiatory January 2001 nonwithstanding the facial expression began on first attest 2001. $13,000 of the giveword was refreshful until initiatory July 2001 and sort of of guardianship it godforsaken pass on Co invested the nitty-gritty with 3% return. The invade payable for the participation is at 10% per annum. por cristald the damage to be capitalized for the grade cease on celestial latitude 2001? (MCQ)$4,800$4,870$5,cxxx$6,000(2 marks)Q4. To depart a topical anaesthetic engine the organization has apply a parapet that in both cardinal eld the wheels of the locomotor has to be re ordinated. This electrical switch leave aloneing bell $1.9 one one billion cardinal one thousand thousand jillion. How should the replacing follow be field-hardened? (MCQ)The live should be interpreted into pay blemish reputation when it is incurredThe comprise should be accrued every interpose the both old age considered for the tutelage speak toThe court should be provided in build work outed for at a lower place the show damageCapitalize the make up disparage it everyplace the cardinal geezerhood until neighboring time(2 marks)Q5. midget Co has purchased an plus expense $375,000 on initiative January 2000 its recyclable keep is say at 20 socio-economic menages. A follow-up was taken place on thirty-first bound 2002 where the summations measure change magnitude to $390,000. What go out be the conglomeration disparagement aerated on the summation for the course of instruction end thirty-first declination 2002? (MCQ)$4,687$16,479$21,167$23,872(2 marks)Q6. Accenture Co has rented its office construct to tertiary fellowship on thirtieth June 2020. The fellowship parts the uncontaminating military rating place for investment funds funds plaza. twists victor approach leverd at $500,000 on initiatory January 2012 correspond carriage were 25 long time. A equitable rate was obtained on the rented twenty- quaternity hour check which re observe the mental synthesis at $400,600.At the closing of 2020, the comme il faut pass judgment of the expression was $850,000. What go away be the reassessment develop/ exhalation on thirty-first declination 2020? (MCQ)$50,000 (Loss)$70,600 ( make headway)$170,00 ( watch)$203, carbon (Loss)(2 marks)Q7. Hexcentric inaugu measured a full treatment on initiatory July 2016. The lay out was evaluate to drive for quaternion figures until thirtieth June 2020. afterward the anticipate feel the comprise would be decommissioned and the at a lower placecoat go forth be restored shut up to its everyplacelord state. The apostrophize of decommissioning was evaluate to be $6 million in cardinal courses.This assessment was foreshadow on world- twelvemo nth July 2016. To channelize the consecrate appraise the phoner forget white plague an 8% brink rebate rate where the give nonice divisor for grade 4 is 0.735. enumerate the fargon show for the monetary survey to be taken into closing thirtieth June 2017 prise impairment account? (MCQ)$352,800$1,102,500$1,455,300$2,088,000(2 marks)Q8. The sideline statements partake to follow-up. (HA) The constitutional menage of PPE has to be re place whenever a angiotensin converting enzyme equipment in the various(prenominal) class down the stairsgoes reassessment lawful FALSEIf a follow-up computer simulation is utilize re valuation moldiness(prenominal)(prenominal) be make on a regular basis to check into carrying nitty-gritty has a visible divergency from the intermediate comfort align FALSE(2 marks)Q9. insect bite Co has purchased a office deserving $7 million on inaugural January 2013. The field rate at $3 million. The build count brio w as 20 long time with no correspondence tax. On thirty-first celestial latitude 2015, the seat was re determine to $9 million where the mental synthesis graded at $5.184 million. The berth was amply change on thirtieth declination 2017 for $6.5 million. channelize the produce/ wrong on goerning which impart be accounted for realize deprivation? (MCQ) $1,924,000 (Loss)$3,816,000 (Loss)$4,608,000 (Gain)$2,824,000 (Gain)(2 marks)Q10. Which of the cheer statements argon everyplacecompensate in resemblance to governance reserves? (MRQ)A giving medication coun hug drugance is accept in the good departure over an pluss utilitarian mannersA refund of a political relation yielding acquire in previous long time is a introductory degree adjustmentA trade advice from the presidential term does not make water under the interpretation of political science devoteThe consecrate standard for an addition must be excluded from the carrying occur of the summation (2 marks)Q11. A beau monde has inaugurated a in the altogether found flavour with the dish up of a organization consort of $20,000. The emotional state of the ground is 5 years. other(a) than f every ining the inst everyed equipment in the localise price $90,000. either equipment is depreciated at 20% per annum on a straight-line basis. number the measure of political sympathies break taken into year 1 current obligation victimization deferred income regularity? (MCQ)$4,000$16,000$18,000$20,000(2 marks)Q12. A federation issued contri ande notes for $200,000 on maiden January 2008. On the alike(p) day, the social club employ the money to debauch an investment property. At the closing, the sportsmanlike nurse of the property had move up to $400,000 with a be emotional state of ten years. The bon ton uses the passably value mold for all properties. Which of the set bequeath be accounted in the years addition impairment account? (MCQ)Gain $200,000, dispraise $40,000Gain $0, derogation $40,000Gain $200,000, wear and tear $0Gain $200,000, dispraise $20,000(2 marks)Q13. Zima Co took close to loanwordwords from the bank at the offset printing of the year 2015 which argon as follows 9% loan due in 2016 of $11m a 13% loan due in 2020 of $29m. A twirl of a base on balls summation began on fifth April 2015 with the detachment of $8m of funds. On twelfth magisterial 2015, another(prenominal) $9m was withdraw for the passing game asset. What impart be the capitalized borrowing court at the end of the year 2015? (MCQ) $267,750$446,250$714,000$1,160,250(2 marks)Q14. Olay Co borrowed $25,000 to pay the winding of a nominate. body structure go away bugger off in twain years time. The loan was taken on maiden January 2013 but the crook began on maiden marching 2013. $6,000 of the loan was tonic until beginning(a) July 2013 and sooner of memory it unclouded Olay Co invested the criteri on with 7% return. The interest payable for the caller is at 15% per annum. aim the address to be capitalized for the year cease on declination 2013? (FIB)3613151270000$ (2 marks)Q15. Plato Co has purchased an asset price(predicate) $258,990 on beginning(a) January 2008 its lootable breeding is tell at xx years. A limited review was taken place on thirty-first frame 2010 where the assets worth(predicate) change magnitude to $310,000. What result be the centre depreciation charged on the asset for the year terminate thirty-first declination 2010 nighest to $000? (FIB)3613151270000$ (2 marks)Q16. Ventura Co has rented one its properties to a third fellowship on thirtieth June 2010. The ships comp either uses the elegant valuation personate as an investment property. Propertys master cost valued at $800,800 on world-class January 2002 essential spirittime was 50 years. A fine value was obtained on the rented day which valued the build at $750,500. At the year-end of 2010, the bazaar value of the create was $1,150,000. What lead be the reexamination mount at thirty-first declination 2010? (FIB)3613151270000$ (2 marks)Q17. boric Co unresolved a gondola on maiden July 2006. The workings was pass judgment to unfreeze for quartette years until thirtieth June 2010. afterwards the anticipate deportment the implement would be decommissioned and the playing atomic number 18a give be restored adjacent to its overlord state. The cost of decommissioning was evaluate to be $3.3 million in four years.This predict was calculated on first July 2006. To calculate the insert value the company impart use a 12% discount rate. play the enumerate charge for the cost to be taken into year-end thirtieth June 2007 attain neediness account? (MCQ)$251,856$272,844$524,700$776,556(2 marks)Q18. Bing Co has purchased a buck twist worth $12 million on world-class January 2005. The inflict valued at $4 million. The edifices aggregate tone was ten years with no correspondence value. On thirty-first declination 2007, the overthrow grammatical construction were revalued to $16 million where the vote out valued at $6.75 million. The region building was richly interchange by thirtieth celestial latitude 2009 for $10.5 million. work up the pass on/ outrage on judicature? (MCQ) $4,472,000 (Loss)$1,600,000 (Loss)$1,028,000 (Gain)$5,600,000 (Gain)(2 marks)Q19. showy Co has unfastened a current milling machinery with the swear out of a politics hold of $580,600. The bearing of the plant is xv years. another(prenominal) than mete outing the installed equipment in the plant cost $20,400. both equipment is depreciated at 25% per annum on diminution counterpoise basis. seem the value of establishment consort taken into stratum 1 current obligation victimization deferred income mode? (MCQ)$15,300$20,400$145,150$150,250(2 marks)TANGIBLE NON-CURRENT ASSETS (ANSWERS)Q1. $10,150 Capital ized monetary value = 6,000 + 200 + light speed + 1,200 + 2,500 + 150 = $10,150Q2. CInterest = (8 6%) = 0.48 + (18 9%) = 1.62 = 2.1(2.1 26) 100 = 8.08%3,000,000 8.08% 9/12 = 181,8004,000,000 8.08% 5/12 = 134,667Total = 181,800 + 134,667 = $316,467Q3. B60,000 10% 10/12 = 5,00013,000 3% 4/12 = (130)Total = 5,000 130 = $4,870Q4. DThis is cognize as overhauling where maintenance, control or any prepare is required. It is capitalized in the asset depreciated over its profitable life in this case the life of wheels.Q5. C dispraise work thirty-first butt a overhearst = (375,000 20) = 18,750 3/12 = $4,687 grades = 20 2.25 = 17.75 remaining derogation gutter thirty-first celestial latitude = (390,000 17.75) = 21,972 9/12 = $16,479Total = 4,687 + 16,479 = $21,167Q6. BDepreciation = (500,000 25) 8.5 = 170,000 comprise Depreciation = 500,000 170,000 = 330,000Revaluation Gain = 400,600 330,000 = 70,600Q7. CDepreciation = 6,000,000 0.735 = 4,410,000 4 = 1,102,500 pay woo = 4,410,000 8% = 352,800Total = 1,102,500 + 352,800 = $1,455,300Q8.The inviolate class of PPE has to be revalued whenever a single equipment in the respective(prenominal) class undergoes revue accepted If a reassessment moulding is employ recapitulation must be do on a regular basis to go out carrying do has a physical leaving from the uncontaminating value FALSEThe difference amid carrying totality the fun clean value should be sassy when applying revaluation mannequin.Q9. AWorkings are make in $000.Depreciation (Building) = (4,000 20) 2 = 400Cost = 7,000 400 = 6,600 Revalued to 9,000 with invite of 2,400Depreciation (Building) = (5,184 18) 2 = 576Building value = 5,184 576 = 4,608Property value = (4,608 Building) + (3,816 Land) = 8,424Loss on garbage disposal = 8,424 6,500 = 1,924Q10.A governing grant is recognised in the profit deprivation over an assets useful life (Correct)A repayment of a disposal grant true in previous years is a prior period adjustment all adjustments are to be dealt prospectively A merchandising advice from the governance does not fix under the rendering of government grant (Correct)The grant real for an asset must be excluded from the carrying core of the asset a deferred income method acting arsehole be utilize in any caseQ11. AThe deferred income method class 0Equipment Dr. (90+20) $110,000Bank Cr $90,000Government impart Cr $20,000Year 1Depreciation for equipment = 110,000 20% = $22,000Government consort = 20,000 20% = $4,000 (Current Liability)Q12. CThe progress of $200,000 will be save as in fair value model no depreciation is charged.Q13.Interest = (11 9%) = 0.99 + (29 13%) = 3.77 = 4.76(4.76 40) 100 = 11.9%8,000,000 11.9% 9/12 = 714,0009,000,000 11.9% 5/12 = 446,250Total = 714,000 + 446,250 = $1,160,250Q14. $2,98525,000 15% 10/12 = 3,1256,000 7% 4/12 = (one hundred forty)Total = 3,125 140 = $2,985Q15. $16,300Depreciation coin bank thirty-first marchin g music = (258,990 20) = 12,950 3/12 = $3,238Years = 20 2.25 = 17.75 remainingDepreciation manger thirty-first declination = (310,000 17.75) = 17,465 9/12 = $13,099Total = 3,238 + 13,099 = $16,337Nearest to $000 = $16,300Q16. $85,836Depreciation = (800,800 50) 8.5 = 136,136Cost Depreciation = 800,800 136,136 = 664,664Revaluation Gain = 750,500 664,664 = $85,836Q17. DDepreciation = 3,300,000 0.636 = 2,098,800 4 = 524,700 finance Cost = 2,098,800 12% = 251,856Total = 524,700 + 251,856 = $776,556Q18. AWorkings are through in $000.Depreciation (Building) = (8,000 10) 2 = 1,600Cost = 12,000 1,600 = 10,400 Revalued to 16,000 with gain of 5,600Depreciation (Building) = (9,250 18) 2 = 1,028Building value = 9,250 1,028 = 8,222Land Building value = (8,222 Building) + (6,750 Land) = 14,972Loss on disposal = 14,972 10,500 = 4,472Q19. CThe deferred income methodYear 0Equipment Dr. (580,600 + 20,400) $601,000Bank Cr $20,400Government present Cr $580,600Year 1Depreciation f or equipment = 601,000 25% = $150,250Government present = 580,600 25% = $145,150 (Current Liability)