Exam (elaborations)
FAC 3702 OCTOBER EXAMS 2024
- Course
- Institution
FAC 3702 OCTOBER EXAMS 2024
[Show more]
Seller
Follow
warasmyeko
Reviews received
Content preview
SUGARBIRD LTDNotes for the year ended 30 June 2024
1. Property, plant and equipment
Buildings Plant Office
furniture
Carrying amount at the beginning of year 2 260 000 2 360 003 -
Gross carrying amount 1 989 000 3 630 003 -
Accumulated depreciation and impairment losses (1 270
(337 800) 000) -
Additions 600 000 245 005
Depreciation (96 950) (204 286) (10 417)
Reversal of impairment loss 360 999
Carrying amount at the end of year 2 154 250 2 516 716 234 588
Gross carrying amount 2 589 000 3 630 003 245 005
Accumulated depreciation and impairment losses (1 113
(434 750) 287) (10 417)
c) Deferred tax calculation
Carrying Tax base Temporary Deferred tax
amount difference asset/Liability
@ 27%/80% x
27%
Land 2 200 000 2 000 000 200 000 (43 200)
2 516 716
Building 2 516 716 (exempt) 0
Plant (1.1) 2 516 716 0 2 516 716 (679 513)
Office furniture (calc 1.2) 234 588 230 421 4 167 (1 125)
Deferred tax liability at 30 June 2024 (723 838)
1. 1 Tax base - plant:3 630 0003- 3 630 0003 c x (40% +
20% + 20% + 20%) = 0
1.2 Tax base - office furniture: 245 005 - 245 005/7 x 5/12=
103 439
, Calculations
1. Building
Cost 1 989 000
Accumulated depreciation (Calc 1.1) (337 800)
Carrying amount - 30 June 2023 1 651 200
Reception area 600 000
Depreciation (Calc 1.2) (96 950)
Carrying amount - 30 june 2024 2 154 250
1.1. (1 989 000 - 300 000)/20 x 4 = 337 800
1.2. (1 989 000 - 300 000)/20 + 600 000/20 x 5/12 =
1.3 Accumulated depreciation : 30 June 2024 = 337 800 +
96 950 434 750
2. Plant
Cost 3 300 000
Restoration costs (calc 2.1) 330 003
3 630 003
Accum ulated depreciation: 30 June 2023(calc 2.2) (909 001)
Carrying amount - 30 June 2023 2 390 999
Recoverable amount:
Higher of -
- fair value less costs to sell (2 150 000 - 40 000) = 2 110
000
- Value in use = 2 030 000
Therefore recoverable amount is R2 030 000
Impairment loss on 30 june 2023 (2 390 999 - 2030 000) (360 999)
Carrying amount - 30 June 2023 2 030 000
Depreciation (2 030 000 - 600 000)/7 (204 286)
Carrying amount on 30 June 2024 1 825 714
Reversal of impairment (Calc 2.4) 360 999
Carrying amount on 30 June 2024 2 186 713
2.1. FV = 760 000
n = 10
I = 8,7%
COMP PV = 330 003
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller warasmyeko. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $8.84. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
67474 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now