User Account

All Pages

Calculate the recoverable amount as at december

Assignment Help Accounting Basics
Reference no: EM132613437

Rexel Limited has an item of plant which has undergone an impairment review at year end (December 2019). At the review, the following information was produced

Fair Value of plant: R 1 400 000

Costs of disposal: 2% of Selling price

Revenue and costs per annum for the remaining useful life are noted below:

Year          Revenue (R )                Costs (R )

2020             960,000                     240,000

2021             880,000                     220,000

2022              700,000                       290,000

A discount rate of 10% is applicable. (No estimated residual value for the plant)

Required:

Problem 1: Calculate the recoverable amount as at 31 December 2019.

Reference no: EM132613437

Questions Cloud

Provide a definition and outline purpose of government grant : Provide a definition and outline purpose of a government grant. Provide the journal entries in the municipality's general journal
Identify the characteristics of each article : Identify the characteristics of each article that tell you the study is a qualitative research study, and not a quantitative research study, citing at least.
Prepare the journal entries for core : Prepare the journal entries for Core for 2017, assuming that Core cannot exercise significant influence over ABC
Situations horizontal analysis : In which situations horizontal analysis are more suitable than vertical analysis?
Calculate the recoverable amount as at december : Calculate the recoverable amount as at 31 December 2019. Revenue and costs per annum for the remaining useful life are noted
FNDM AM2.1 Applied Mathematics Assignment : FNDM AM2.1 Applied Mathematics Assignment Help and Solution, Middle East College - Assessment Writing Service - Calculate probability and basic statistical
Who else might contact to provide further support for client : Who else might you contact to provide further support and protection for the client? Write a short case note in third person documenting what the client.
How would an entity know when to impair the assets : What steps are to be taken and what information is required and/or should be considered before determining whether an asset is impaired?
Prepare ledger accounts and trial balance for the business : Prepare ledger accounts and trial balance for this business. July 4. Purchased Kshs. 12,000 of additional equipment on credit from XYZ ltd.

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.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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