Solved

Use the Following Information to Answer This Question

Question 14

Multiple Choice

Use the following information to answer this question.
An extract of a company's draft statement of financial position at 30 June 2012 discloses the following:
Plant (at cost) $500 000
Less accumulated depreciation 300 000 $200 000
On 30 June 2013 the company assessed the fair value of the plant to be $350 000. At 30 June 2014, the carrying amount of the plant was $250 000.
The tax rate is 30%. Depreciation rates are 10% p.a. (accounting) and 12.5% p.a. (tax) using the straight-line method.
The journal entries to adjust for the tax effect of the revaluation at 30 June 2013 is:


A) Use the following information to answer this question. An extract of a company's draft statement of financial position at 30 June 2012 discloses the following: Plant (at cost) $500 000 Less accumulated depreciation 300 000 $200 000 On 30 June 2013 the company assessed the fair value of the plant to be $350 000. At 30 June 2014, the carrying amount of the plant was $250 000. The tax rate is 30%. Depreciation rates are 10% p.a. (accounting) and 12.5% p.a. (tax) using the straight-line method. The journal entries to adjust for the tax effect of the revaluation at 30 June 2013 is: A) B) C) D)
B) Use the following information to answer this question. An extract of a company's draft statement of financial position at 30 June 2012 discloses the following: Plant (at cost) $500 000 Less accumulated depreciation 300 000 $200 000 On 30 June 2013 the company assessed the fair value of the plant to be $350 000. At 30 June 2014, the carrying amount of the plant was $250 000. The tax rate is 30%. Depreciation rates are 10% p.a. (accounting) and 12.5% p.a. (tax) using the straight-line method. The journal entries to adjust for the tax effect of the revaluation at 30 June 2013 is: A) B) C) D)
C) Use the following information to answer this question. An extract of a company's draft statement of financial position at 30 June 2012 discloses the following: Plant (at cost) $500 000 Less accumulated depreciation 300 000 $200 000 On 30 June 2013 the company assessed the fair value of the plant to be $350 000. At 30 June 2014, the carrying amount of the plant was $250 000. The tax rate is 30%. Depreciation rates are 10% p.a. (accounting) and 12.5% p.a. (tax) using the straight-line method. The journal entries to adjust for the tax effect of the revaluation at 30 June 2013 is: A) B) C) D)
D) Use the following information to answer this question. An extract of a company's draft statement of financial position at 30 June 2012 discloses the following: Plant (at cost) $500 000 Less accumulated depreciation 300 000 $200 000 On 30 June 2013 the company assessed the fair value of the plant to be $350 000. At 30 June 2014, the carrying amount of the plant was $250 000. The tax rate is 30%. Depreciation rates are 10% p.a. (accounting) and 12.5% p.a. (tax) using the straight-line method. The journal entries to adjust for the tax effect of the revaluation at 30 June 2013 is: A) B) C) D)

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q2: When an asset is sold the resulting

Q6: Property,plant and equipment are assets that:
A)are expected

Q9: The cost of an item of property,

Q10: Use the following information to answer this

Q11: Jackson Limited acquired a bundle of assets

Q12: The cost of property, plant and equipment

Q13: Troubadour Limited had an existing revaluation surplus

Q15: Costs that may be included in the

Q17: A change in accounting policy from the

Q18: A non-current property, plant and equipment asset

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents