1.
On 1 July 2011 Sprintfast Couriers, which has a year-end of 30 June, dissipationd a bestowal barter for use in its courier operations at a require of $65 000. At the end of the barter’s serviceable activity it is expected to own a residual compute of $5000. During its six-year serviceable activity, Sprintfast Couriers Limited expected the barter to be driven 246 000 kilometres.
Required
Calculate the annual derogation enjoin for each of the six years of the barter’s activity using the forthcoming rules:
the straight-line rule
the sum-of-digits rule
the declining-equalize rule
the units-of-production rule using kilometres as the statement of use and showy the forthcoming usage:
Year
Kilometres
2012
28 000
2013
34 000
2014
42 000
2015
55 000
2016
68 000
2017
19 000
246 000
3.
Petersen Ltd has the forthcoming fix and edifice in its financial statements as at 30 June 2018:
$
Residential fix, at require
1 000 000
Factory fix, at valuation 2016
900 000
Buildings, at valuation 2016
800 000
Accumulated derogation
(100 000)
At 30 June 2018, the equalize of the revaluation balance is $400 000, of which $300 000 relates to the factory fix and $100 000 to the edifices. On this selfselfsame limit, rebellious valuations of the fix and edifice are obtained. In agreement to the over proceeds, the assessed honorable computes at 30 June 2018 are:
Residential fix, previously narrative at require
1 100 000
Factory fix, previously revalued in 2016
700 000
Buildings, previously revalued in 2016
900 000
Required
Provide the chronicle entries to statement for the revaluation on 30 June 2018. Petersen Ltd classifies the residential fix and the factory fix as divergent classes of proceeds.
3.
Deliveries Ltd leased a barter from a barter trafficker, City Vans Ltd. City Vans Ltd uncongenial the barter at a require of $180 000. The barter allure be painted delay Deliveries Ltd's logo and advertising and the require of repainting the barter to frame it proper for another proprietor indelicate years posterior is estimated to be $40 000. Deliveries Ltd plans to conduct the barter following the lease but has not made any commitment to the lessor to dissipation it. The stipulations of the lease are as follows:
Date of entering lease: 1 July 2019.
Duration of lease: indelicate years.
Life of leased asset: five years, following which it allure own no residual compute. Lease payments: $ 100,000 at the end of each year.
Interest scold implied in the lease: 10 per cent.
Unguaranteed residual: $50 000.
Fair compute of barter at prosperity of the lease: $351 140.
Required
Demonstscold that the profit scold implied in the lease is 1O per cent.
Prepare the chronicle entries to statement for the lease affair in the books of the lessor. City Vans Ltd at 1 July 2019 and 30 June 2020.
Prepare the chronicle entries to statement for the lease affair in the books of the resident, Deliveries Ltd, at 1 July 2019 and 30 June 2020.
On 30 June 2023 Deliveries Ltd pays the residual of $50 000 and dissipations the barter. Prepare all chronicle entries in the books of Deliveries Ltd for 30 June 2023 in agreement to the issue of the lease and the dissipation of the barter.
