Exam 21: Non-Current Assets: Revaluation,disposal and Other Aspects

L Ltd acquired the business of M Ltd for a cash payment of $750 000.The carrying amount of M Ltd's assets at the time of purchase was $410 000 while the independent fair value was $630 000.There were no liabilities.What is the value of the purchased goodwill recorded by L Ltd?

If the proceeds of sale of an asset are less than its carrying amount at the date of sale,a gain/loss________ results.

An entity with many similar assets in the same class can use c______________-rate depreciation for that class.

Which of these are not examples of biological assets?

The pair of terms that match is: i.Non-current fixed assets - depreciation ii.Natural resources - amortisation iii.Intangible assets - depletion iv.Land - depreciation

The balance sheet of Brown Ltd at 31 December 2012 shows the following: \ Plant 50,000 Accumulated Depreciation-Plant 30,000 20,000 On 1 January 2013,based on a valuer's estimate of fair value,it was decided to revalue the plant to $35 000.This was the first time the asset had been revalued. The journal entry to record the revaluation is: a. Accumulated Depreciation-Plant $\quad$ 30,000 $\quad$ Plant $\quad$$\quad$ 15,000 $\quad$ Gain on revaluation Plant $\quad$ 15,000 b. Plant $\quad$ 15,000 $\quad$ Gain on revaluation plant $\quad$ 15,000 c. Expense on Revaluation of Plant $\quad$ 15,000 $\quad$ Plant $\quad$$\quad$ 15,000 d. Plant $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ 15,000 $\quad$ Expense on Revaluation of Plant $\quad$ 15,000 $\quad$ Accumulated Depreciation-Plant $\quad$ 30,000