Determine the carrying amount, Financial Accounting

An item of plant was purchased for $100,000 on 1 January 2009. At that time its estimated residual value was $5,000. At 31 December 2009 prices, the residual value was estimated at $5,200. By 31 December 2010 this had risen to $5,500. In 2009 the asset was initially depreciated straight line over 40 years. Due to lower performance than expected, at 1 January 2010 the total useful life of the machine was revised to 30 years. No further revision to the useful life was necessary at 31 December 2010.

The entity uses the cost model for this class of assets. Depreciation adjustments are made annually as part of the year end process.

Requirement

Determine the carrying amount of the plant at 31 December 2010.

Posted Date: 3/15/2013 2:47:50 AM | Location : United States







Related Discussions:- Determine the carrying amount, Assignment Help, Ask Question on Determine the carrying amount, Get Answer, Expert's Help, Determine the carrying amount Discussions

Write discussion on Determine the carrying amount
Your posts are moderated
Related Questions
The following information for the six months ended 31 December 2009 relates to the business of Mr N Morris: a) Opening cash (including bank) balance Rs 1,200 b) Productio

During FY 2014, the voters of Surprise County approved construction of a $21 million police facility and an $11 million fire station to accommodate the county's population growth.

Q. Illustrate Management of commercial and political risk? Commercial risk comprises both the physical risk that goods in transit may be lost stolen or destroyed as well as the

Since 1968, Dracula Limited has traded in Doncaster, South Yorkshire as a manufacturer of fancy-dress and theatrical costumes. It produces a wide range of general theatrical costum

Calculate breakeven in sales units and in sales value: Tycoon makes and sells 600 toy cars per month.  Each toy car is sold for RM40 each.  Tycoon is currently producing at 50

write a short note of concept and convention

Q. Explain about Spring and Forward loading? Spring loading - Timing of option grants to occur before good news or after bad news is released Concerns about insider trading

1. Complete a horizontal analysis using the dollar and percent change in the following items from the preceding year to the current year: (one typed page: use a table format with f

Compute the present value of Rs. 1000 receivable 6 years thus if the discount rate is 10 percent. Solution: The present value is computed as follows: PV kn = FV n . PVIF k,n