Reference no: EM132959169
On 1 July 2017, Telus Bhd received a government grant of RM650,000 to acquire a plant. The fair value of the plant is RM3,200,000. The expected useful life of the plant is 50 years with a nil residual value. The company adopts the straight-line monthly basis method of depreciation. Telus Bhd treats the grant received as a deduction against the asset.
On 1 January 2020, Telus Bhd no longer comply to the condition attached to the grant and the grant has become repayable in full.
The financial year of Telus Bhd ends on every 31 December.
Problem 1. Based on the paragraph above, the relevant journal entry for the year ended 31 December 2019 is:
a) Dr SOPL depreciation RM51,000; Cr Accumulated Depreciation RM51,000.
b) Dr SOPL depreciation RM64,000; Cr Accumulated Depreciation RM64,000.
c) Dr SOPL Deferred Income RM13,000; Cr Government Grant RM13,000.
d) Dr Government Grant RM13,000; Cr SOPL Deferred Income RM13,000.
Problem 2. Based on paragraph above, the carrying amount of plant as at 31 December 2019 is:
a) RM3,008,000
b) RM3,040,000
c) RM2,422,500
d) RM2,397,000
Problem 3. In the absence of the grant, the accumulated depreciation of the plant on 1 January 2020 is:
a) RM192,000
b) RM127,500
c) RM160,000
d) RM153,000
|
What is the value of the total assets in abc corporation
: ABC Corporation has a debt/equity ratio of 0.4, total debt of $400,000, sales of $50,000, What is the value of the total assets in ABC Corporation
|
|
Should nemonix switch to the wire transfer system
: If transfers will be made on the 250 days that banks are open each year, should Nemonix switch to the wire transfer system? Justify your response.
|
|
What audit opinion is appropriate given the notes
: Zeeman did not materially violate generally accepted accounting principles. What audit opinion is appropriate given the notes above
|
|
What is the ninv for the new equipment
: The old system cost $140,000 and had been depreciated as a 10-year MACRS asset. Its salvage value is $10,000. What is the NINV for the new equipment?
|
|
What the relevant journal entry for the year ended december
: What the relevant journal entry for the year ended 31 December 2019 is? Telus Bhd no longer comply to the condition attached to the grant
|
|
What is the nature of auditing
: What is the nature of auditing. What is the difference between auditing, assurance, and accounting? What are the various types of audits
|
|
What is the required rate of return on this stock
: The dividend growth rate is expected to remain constant at the current level. What is the required rate of return on this stock
|
|
Find the allowance for doubtful accounts balance is before
: At December 31, 2015 (end of the current year), the Allowance for Doubtful Accounts balance is $100 (credit) before the end-of-period adjusting entry is made.
|
|
What is the net carrying value of the plant after impairment
: ABC deems it appropriate to have a discount rate of 8%. What is the net carrying value of the plant after impairment
|