Exam (elaborations)
FAC3702 ASSIGNMENT 1 SEMESTER 2 OF 2022
- Institution
- University Of South Africa (Unisa)
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FAC3702 ASSIGNMENT 1 – SEMESTER 2 OF2022
(a) Notes to the Financial Statements of CareFirst Ltd for the year ended 31
December 2021
1. Profit before tax
Included in profit before tax are the following
R
Incomes
Rental income (15 000 * 7) 105 000
Fair value adjustment [(150 000 + 480 000) − (130 000 + 45 000
455 000)]
Profit on disposal of equipment [187 500 (𝐶5) − 109 375 (𝐶5)] 78 125
Expenses
Monthly security fees (550 * 12) 6 600
Loss on sale of materials (25 000 − 15 000) 10 000
Depreciation [(𝐶2), (𝐶3)& (𝐶5)(39 787 + 27 267 + 53 125)] 120 179
2. Property, plant & equipment
Land Buildings Ambulance Medical
Equipment
R R R R
Carrying amount at beginning of year 220 000 1 594 237 - 125 000
Cost (𝐶1 & 𝐶2) 220 000 1 611 000 - 250 000
Accumulated Depreciation (𝐶2) 0 (16 763) - (125 000)
Revaluation (𝐶1) 65 000
Depreciation for the year [(𝐶2), (𝐶4)& (𝐶5)] (39 787) (27 267) (53 125)
Additions at cost (𝐶5) 725 000 187 500
Disposals at carrying amount (𝐶5) (109 375)
Carrying amount at end of year 285 000 1 554 450 697 733 150 000
Cost / Gross Carrying amount 285 000 1 611 000 725 000 187 500
Accumulated Depreciation 0 (56 550) (27 267) (37 500)
Land was revalued on 31 December 2021 by an independent sworn appraiser.
The carrying amount of the land if it was carried at cost would have amounted to R220
000.
FOR ACCADEMIC NEED CONTACT INFO@UNITUTORIALS.CO.ZA/0651609781
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