This document serves as a guide to help reflect on my review of Assessment 2 for FAC2601. This is purely for reflection purposes and shows my decisions on the answers to the assessment as well as the marks I obtained for each answer.
Dashboard / My courses / FAC2601-23-S1 / Welcome to FAC 2601 - Financial Accounting For Companies / Assessment 2
Started on Monday, 17 April 2023, 7:40 PM
State Finished
Completed on Monday, 17 April 2023, 8:29 PM
Time taken 49 mins 4 secs
Marks 30.00/30.00
Grade 100.00 out of 100.00
, Question 1
Correct
Mark 2.00 out of 2.00
MENU
Part A (20 marks)
Dashboard / My courses / FAC2601-23-S1 / Welcome to FAC 2601 - Financial Accounting For Companies / Assessment 2
Questions 1 - 10 use the below information:
The following list of balances is an extract from the trial balance of Crew Ltd on 31 December 2022:
Additional
Info R
Land at revaluation....................................................... (1) 600 000
Buildings at cost........................................................... (1 & 3) 840 000
Land at cost................................................................. (2) 700 000
Buildings at cost........................................................ (2) 650 000
Machinery and equipment at cost ................................. (3) 620 000
Motor vehicles at cost................................................... (3 & 4) 440 000
Accumulated depreciation
- Machinery and equipment.......................................... (3) ?
- Motor vehicles........................................................... (3 & 4) 277 000
Additional information:
1. Land and buildings are owner occupied and consist of land situated on Erf 15, Pretoria East, with a factory building thereon. The land was
acquired on 1 January 2020 for R480 000 and was revalued for the first time on 1 April 2022 by Mr. Cool, a sworn appraiser. The buildings
were erected during September and October 2022 at a cost of R840 000 and was completed on 31 October 2022. Machinery was withdrawn
from production for the two months to construct the building. The buildings were brought into use on 1 November 2022. No depreciation is
written off on land, but it is company policy to revalue land every three years at market value.
2. Land and buildings that cost R700 000 and R650 000 respectively situated on Erf 285, Randburg, were purchased on 1 March 2022. The
land and building were leased out to tenants from 1 March 2022 The following information regarding the land and buildings was available:
Land Buildings
Land at revaluation – 31 December 2022.................... 900 000
Buildings revaluation – 31 December 2022................. 660 000
3. Other non-current assets are depreciated at the following rates and methods:
Buildings – 2% per annum using the straight-line method.
Machinery and equipment – 15% per annum using the straight-line method.
(All machinery was purchased on 1 June 2020)
Motor vehicles – 25% per annum using the diminishing balance method.
4. The only other transaction regarding non-current assets apart from the transaction in note 1, is the following:
On 1 January 2022, a motor vehicle which originally cost R80 000 and on which depreciation of R48 000 was already written off, was traded
in for a new vehicle costing R140 000.
REQUIRED:
Answer the following multiple-choice questions. Indicate your choice by selecting only one option from the four options given below.
Question 1:
Land will be disclosed at the following amount in the Statement of Financial Position as at 31 December 2022?
1. R480 000
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