An entity acquired an item of Plant in exchange for an item of Equipment. The Equipment has a carrying value of $5000 and a fair value of $6000. The journal entry to record the acquisition of the Plant will show:
A) a loss on acquisition of $1000;
B) proceeds on sale of Equipment of $1000;
C) a gain on sale of $1000;
D) proceeds on sale of Plant of $1000.
Correct Answer:
Verified
Q17: When using the revaluation model:
A)ongoing record keeping
Q19: The cost of property,plant and equipment is
Q20: Wilson Limited applied the straight-line method of
Q21: Which of the following is an argument
Q22: ABC Limited acquired an item of plant
Q23: For the purposes of recognising a non-current
Q24: When applying a revaluation measurement model to
Q26: Subsequent to the initial recognition of an
Q27: Depreciation is a process that is designed
Q28: Under IAS 16, the depreciation charge for
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents