Answer to Question #109881 in Accounting for Philip

Question #109881
On 30 September 2019, office desk purchased on 30 April 2017 at a cost price of R5 200 was sold for R4 800 cash. A replacement equipment was purchased at a cost of R43 000 on 1 November 2019. The total depreciation (correctly calculated) for the year on office equipment amounted to R15 200. 2. Land and buildings were acquired on 1 April 2019. 3. On 28 February 2019, the business purchased a new tipper truck at a cost of R101 000. 4. It is the accounting policy of Tera Trader to provide depreciation as follows: Vehicles: According to the straight-line method, at 20% per annum, Office equipment: According to the diminishing-balance method, at 18% per annum, Buildings: According to the straight-line method, at 2% per annum. QUESTION 1 Which one of the following alternatives represents the correct amount that must be discloses as property, plant and equipment in the statement of financial position of Mageza Transport as at 31 December 2019?
1. R2 576 000
2. R2 413 722
3. R2 344 000
4. R2 370 200
1
Expert's answer
2020-04-20T10:31:39-0400
  1. R2 576 000  

266 000+110 000+2 200 000=2 576 000


in the statement of financial position

fixed assets are reflected in the carrying amount (residual value)


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