Reference no: EM132736037

Problem 1: Under AASB 116, which of the following would normally not be regarded as separate classes of assets?

Select one:

a. Computer equipment

b. No response is correct, i.e., all would normally be regarded as separate classes of assets

c. Office desks

d. Motor vehicles

Problem 2: Bellamy Pty Ltd enters into a sale-and-leaseback arrangement as follows:Carrying amount of asset $50 000, Fair value of asset $40 000, Proceeds from sale of asset $44 000. The resulting lease is classified as an operating lease. According to AASB 117, Bellamy should make the following entry(ies):

Select one:

a. Dr Loss on Revaluation $10 000, Cr Asset $10 000, Dr Cash at Bank $44 000, Cr Deferred gain on Sale $4000, Cr Asset $40 000

b. Dr Cash at Bank $44 000, Dr Deferred Loss on Sale $6000, Cr Asset $50 000

c. Dr Cash at Bank $44 000, Dr Loss on Sale $6000, Cr Asset $50 000

d. Dr Loss on Revaluation $6000, Cr Asset $6000, Dr Cash at Bank $44 000, Cr Asset $44 000