Exam 15: Non-Current Assets: Revaluation, Disposal and Other Aspects

Assume that a machine with a cost of $90 000 has accumulated depreciation of $48 000 on the date of its disposal. What is the profit or loss on disposal of the old machine if it was traded-in for $40 000 on a new machine? (Ignore GST.)

Which of the following terms have the same meaning in accounting? I. Book value II. Carrying amount III. Written down value

Which statement concerning revaluations that reverse prior adjustments in value is untrue?

Proceeds from the sale of equipment is a/an ______________account.

Under IAS 38/AASB 138, which statement concerning internally generated intangible assets is incorrect?

Accounting standard IAS 16/AASB 116, Property, Plant and Equipment:

On 31 May 2018 a photocopying machine with a cost of $12 000 has accumulated depreciation written off of $10 000. If the machine is sold for $1 500 on 1 June 2018 what will be the net effect of the sale on the income statement?

Bronwyn's Computer Shop purchased some new equipment by trading in old equipment with a carrying amount of $10 000. Cash of $8 000 was paid to the supplier and a trade-in allowance of $7 000 was granted. The new equipment should be recorded at:

On 31 December 2019 an item of machinery had a cost of $300 000 and accumulated depreciation of $280 000. If the machinery was sold for a profit of $30 000 on 1 January 2020, how much was recorded as income from the proceeds of the sale?

Any revaluations that occur must be upward or downward from an asset's:

Which of the following is the basic accounting entry for a revaluation decrease of a non-depreciable asset that is not a reversal of an original increase?

On 31 December 2018 Fraser Ltd's balance sheet shows motor vehicles at a cost price of $400 000 less accumulated depreciation $100 000. Fraser Ltd uses the cost model to value its assets. On 31 December 2018 an estimate is made that the recoverable amount of the vehicles is $270 000. Under IAS 36/AASB 136, Impairment of Assets, the accounting entry to record the write down of the motor vehicles to recoverable amount is which of the following?

In rare cases the cost of purchasing a business combination may be less than the sum of the fair values of the identifiable assets and liabilities acquired (bargain purchase). Which of the following statements concerning the requirements of IFRS 3/AASB 3 in this situation is correct?

Under IAS 41/AASB 141,biological assets are recorded in the accounting records based on their:

Mackenzie Ltd's fleet of delivery trucks (original cost $850 000) had a carrying amount on 1 July 2019 of $470 000. On that date, their value was revised to $500 000. Future depreciation charges will be based on which amount?

Which of the following statements is correct?

On 1 June 2019 Goodwin Limited acquired the business of Monty Inc. for $280 000. The carrying amount of Monty Inc's net assets at the time of the acquisition was $215 000 while independent valuers calculated their fair value at $250 000. Goodwin Limited should debit 'Goodwill' for the amount of:

When an asset is sold, the gain or loss on disposal is the difference between the:

If assets are to be valued at other than cost, accounting standard IAS 16/AASB 116, Property, Plant and Equipment, requires what basis of valuation to be used?

Which of the following statements concerning patents is correct?