Answer to Question #166251 in Accounting for Aakil

Question

nrise Limited purchased a helicopter for R4 500 000 at a residual value of R150 000 on 30 June 2015. 

The helicopter is depreciated using the straight line method over 8 years.

Sunrise Limited uses the revalution model for its Property, Plant and Equipment. The business 

purchased vehicles at the cost of R1 500 000 in 31 March 2014. Vehicles have 12 years useful life at 

nil residual value. An independent valuator assessed the value of the helicopter and vehicles to be R4 

300 000 and R1 300 000, respectively during the current year. These are the only two assets owned 

by the company. The tax authorities account for wear and tear on the helicopter and vehicles of 20% 

p.a and 10% p.a respectively, wear and tear is not apportioned.

Financial year-end is 31 December 2016

The tax rate is 30% p.a.

Required: (Show all your workings and round off final answers to the nearst whole number)

A. Use the Balance Sheet Approach to calculate the deferred tax which is applicable to each item from 

the date of purchase and in addition prepare the Property, Plant and Equipment Note for Sunrise 

Limited for the year ended 31 December 2016.

Answer 1

Dear Aakil , your question requires a lot of work, which neither of our experts is ready to perform for free. We advise you to convert it to a fully qualified order and we will try to help you. Please click the link below to proceed: Submit order