The following information relates to the disposal of two machines: Machine 1 Machine 2 USD USD Cost 120,000 140,000 Selling price 90,000 80,000 Profit/(loss) on sale 30,000 (40,000) What was the total carrying amount of the machines sold?
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1 .A company acquired a new minicomputer system for USD50,000 on 1 November 2015. The computer’s estimated useful life is five years, at the end of which it is expected to have a scrap value of USD4,550.The company’s financial year ends on 31 March and straight-line depreciation is applied on a time-apportioned basis.What is the depreciation charge on the computer in profit or loss for the year to 31 March 2016?
A USD3,788 B USD4,167 C USD9,090 D USD10,000
2 .The following information has been extracted from a company’s statements of financialposition: 31 December 2015 31 December 2014 Cost Depreciation Cost Depreciation USD000 USD000 USD000 USD000 Plant and equipment 176 34 143 21 During the year ended 31 December 2015 equipment which had an original cost of USD16,000 and accumulated depreciation of USD10,000 was sold.What amounts should be shown for depreciation expense and purchase of plant and equipment in the financial statements for the year ended 31 December 2015?
A Depreciation expense: USD3,000; Purchase of plant and equipment: 17,000 B Depreciation expense: USD3,000; Purchase of plant and equipment: 49,000 C Depreciation expense: USD23,000; Purchase of plant and equipment: 17,000 D Depreciation expense: USD23,000;Purchase of plant and equipment: 49,000
3 .On 1 January 2015 a company had plant and equipment with a cost of USD150,000 and accumulated depreciation thereon of USD60,000. During the year ended 31 December 2015 the cost of plant additions was USD30,000 and plant was disposed of with a cost of USD20,000 for USD18,000. This plant was bought on 30 September 2013.The depreciation policy is to make an allowance of 25% per annum on the reducing balance with a full charge in the year of acquisition and none in the year of disposal. What is the depreciation charge for the year ended 31 December 2015?
A USD27,188 B USD27,500 C USD27,891 D USD28,750
4 .On 1 January 2015 a company had plant and equipment with a cost of USD150,000 and accumulated depreciation thereon of USD60,000. During the year ended 31 December 2015 the cost of plant additions was USD30,000 and plant was disposed of with a cost of USD20,000 for USD18,000. This plant was bought on 30 September 2013.The depreciation policy is to make an allowance of 25% per annum on the reducing balance with a full charge in the year of acquisition and none in the year of disposal. What is profit or loss on disposal of the plant?
A USD6,750 B USD8,000 C USD9,563 D USD13,000
5 .A company has a number of items of equipment, which are depreciated at 25% per annum on a reducing balance basis, with a full year’s charge in the year of acquisition and none in the year of disposal.On 1 June 2015 the equipment had a carrying amount of USD10,951, and USD6,929 on 31 May 2016. During the year, equipment with a cost of USD5,000, bought on 1 July 2013, was sold.What was the cost of new equipment during the year ended 31 May 2016?
A USD698 B USD978 C USD1,100 D USD3,013
7 .The following information was disclosed in the financial statements of a company for the year ended 31 December 2015: 2015 2014 USD USD Plant and equipment, cost 735,000 576,000 Less: accumulated depreciation 265,000 315,000 ——— ——— Carrying amount 470,000 261,000 ———— ———— During 2015: Expenditure on plant and equipment was USD512,000 Loss on the disposal of old plant was USD107,000 Depreciation charge on plant and equipment was USD143,000 What were the sales proceeds received on the disposal of the old plant?
A USD53,000 B USD153,000 C USD246,000 D USD267,000
8 .The following items have been extracted from the accounts of a company for the year ended 31 December 2015: USD Depreciation charge 30,000 Profit on sale of tangible non-current assets 5,000 Proceeds from sale of tangible non-current assets 20,000 Purchase of tangible non-current assets 25,000 If the carrying amount of tangible non-current assets was USD110,000 on 31 December 2014, what was it on 31 December 2015?
A USD70,000 B USD80,000 C USD85,000 D USD90,000
9 .Artur bought a car on 1 January 2013 for USD10,000. On 1 July 2015 he accepted USD3,500 trade in allowance on a new car. The new car cost USD12,000. Artur depreciates all non-current assets at a rate of 25% per annum on cost at the year end. He prepares accounts to 31 December each year.What is the resulting under/over allowance for depreciation on the sale of the first car?
A Under allowance of USD1,500 B Over allowance of USD1,500 C Under allowance of USD5,000 D Over allowance of USD5,000
10 .In Bryn’s accounts for the year ended 31 December 2015 there is a gain of USD222 on the disposal of a machine. This machine had been purchased on 1 October 2012 at a cost of USD3,000.Bryn had sold the machine for cash on 30 June 2015 and his stated policy is to depreciate plant and equipment on the reducing balance method at the rate of 20% per annum on a monthly basis.How much were the sale proceeds for the car?
A USD1,358 B USD1,642 C USD1,580 D USD1,864
