Exam (elaborations)
FAC3704 Assignment 1 Semester 2 2023
- Course
- Group Financial Reporting
- Institution
- University Of South Africa
FAC3704 Assignment 1 Semester % TRUSTED workings with detailed Answers for A+ Grade.
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FAC3704ASSIGNMENT 1 SEMESTER 2 2023
, ASSESSMENT 01 (Second semester) (30 marks)
WRITTEN ASSESSMENT
Brickblock Ltd is a manufacturer and retailer of clay bricks and cement blocks. The following
information of Brickblock Ltd was presented to you for the financial year ended 31 December 2022.
BRICKBLOCK LTD
EXTRACT FROM THE STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE
INCOME FOR THE YEAR ENDED 31 DECEMBER 2022
2022
R
Sales 12 850 000
Cost of sales (4 500 000)
Gross profit 8 350 000
Other income (refer 1) 780 000
Other expenses (refer 2) (880 000)
Profit before tax 8 250 000
Additional information:
1. Other income
The following items are included in other income:
• Dividends received from listed investments amounting to R80 000.
• The annual rent is receivable on 1 July every year and the following amounts were received
from an investment property owned by Brickblock Ltd:
1 July 2020 1 July 2021 1 July 2022
R R R
48 000 60 000 72 000
• Profit on sale of machinery amounting to R380 000 (refer 3).
• Foreign income amounting to R190 500 (refer 4).
2. Other expenses
The following items are included in other expenses:
• Depreciation for the year on machinery amounting to R405 000
• Legal fees amounting to R60 460 that are not deductible for tax purposes
• Interest paid on late payment of provisional tax R 10 200
3. Property, plant and equipment
On 1 January 2022 Brickblock Ltd sold a brick manufacturing machine for R800 000. On this
date the carrying amount and tax base of the brick manufacturing machine amounted to
R420 000 and R360 000 respectively. The original cost of this brick manufacturing machine at
acquisition date amounted to R600 000.
The cost, carrying amount and tax base of the remaining manufacturing machinery (excluding
the brick manufacturing machine on the respective financial year ends on 31 December were as
follows:
1
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