Calculate the carrying amount of the machinery

Assignment Help Accounting Basics
Reference no: EM133133418

Question - ABC is a listed company headquartered in Perak, Malaysia. ABC is involved in the manufacturing of rubber gloves and due to the Covid-19 pandemic, the company is undertaking a rapid expansion program to cater high market demand of its gloves.

On 1 January 2020, ABC purchased an item of machinery at a cost of RM80,000. It is ABC's policy to depreciate its machinery at 25% using reducing balance basis. ABC expects to derive future cash inflows of RM15,000 per annum for the next four years, from the use of the machinery. The borrowing cost of Omega is 5%.

Required - Calculate the carrying amount of the machinery as at 31 December 2021, using the value in use method and historical cost.

Reference no: EM133133418

Questions Cloud

Science technology resources presentation : Design a 10-12 slide digital presentation for elementary educators demonstrating three types of technology
How different are federal trial procedures compared : How different are federal trial procedures compared to civil procedures in U.S. State Courts?
Calculate the price of a face value : Calculate the price of a $1000 face value five year coupon bond when the yield to maturity is 5%, and the coupon rate is 7%.
Values for the number of firms and profit per firm : Consider an industry subject to agglomeration economies. The profit per firm is $120 for an isolated firm and increases to the maximum of $180 per firm in a 7-f
Calculate the carrying amount of the machinery : Calculate the carrying amount of the machinery as at 31 December 2021, using the value in use method and historical cost
How many customers would be waiting in line : You are planning a bank. You plan for six tellers. Tellers take 15 minutes per customer with a standard deviation of 8 minutes. Customers arrive one every three
Differentiate small business from ordinary business : What is financial Market and how financial markets affect the economic performance?
Price of high-speed internet access for consumers : According to Internet World Stats, about 30% of all Americans have big h-speed internet access. Suppose that American societyF decides that it is important that
What is the correct cash balance as of december : This account is used for disbursement to various suppliers and had P3,245,000 balance as of December 31, 2022. What is the correct cash balance as of December

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd