Started on Wednesday, 10 April 2024, 6:12 PM
State Finished
Completed on Wednesday, 10 April 2024, 7:02 PM
Time taken 49 mins 42 secs
Marks 34.00/40.00
Grade 85.00 out of 100.00
Question 1
Complete
Mark 2.00 out of 2.00
Bold Ltd purchased machinery on 1 January 2021 at a cost of R1 200 000. A major inspection has to be carried out on the machinery
every three years. The last inspection performed on the machine was on 31 December 2020 by the seller and the inspection costs were
included in the purchase price. On the acquisition date, the present value of future expected inspection costs to be incurred was
estimated at an amount of R240 000. On the acquisition date the estimated useful life of 10 years was allocated to the machine. The
inspection component is part of the machine and not a separate asset.
The total depreciation on the machinery (including depreciation on the inspection component) for the year ended 31
December 2023 is:
Bold Ltd purchased machinery on 1 January 2021 at a cost of R1 200 000. A major inspection has to be carried out on the machinery
Dashboard / My courses / FAC2601-24-S1 / Welcome Message / Assessment 2
every three years. The last inspection performed on the machine was on 31 December 2020 by the seller and the inspection costs were
included in the purchase price. On the acquisition date, the present value of future expected inspection costs to be incurred was
estimated at an amount of R240 000. On the acquisition date the estimated useful life of 10 years was allocated to the machine. The
inspection component is part of the machine and not a separate asset.
The carrying amount of the machinery (including the inspection component) for the year ended 31 December 2021 is:
1. R1 024 000
2. R1 000 000
3. R1 056 000
4. R1 124 000
Question 3
Complete
Mark 0.00 out of 2.00
Assume that all the information of Bold Ltd given in questions 1 and 2 remains applicable with the exception of a change in the period
of the new inspection costs. Due to several factors that occurred during the current financial year, instead of the inspection being
completed every three years as planned, the new inspection costs need to be done after 30 months. The cost of the first inspection
amounted to R300 000.
The inspection costs derecognised in the property, plant and equipment note for the period 31 December 2023 is:
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