Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. question 3 xyz ltd purchased machinery on 1 april

QUESTION 3 XYZ Ltd purchased machinery on 1 April 2017 for $500 000; the machinery...

90.2K

Verified Solution

Question

Accounting

QUESTION 3

XYZ Ltd purchased machinery on 1 April 2017 for $500 000; the machinery had an estimated useful life of ten years.

On 1 October 2020, it was determined that the machinery had a FV of $360 000, a FV less costs to sell of $348 000, and a VIU of $350 000.

On 1 February 2023, it was determined that the machinery had a FV of $180 000, a FV less costs to sell of $175 000, and a VIU of 200 000.

Required:

Part A:

Assume XYZ Ltd used the cost model. Complete the financial statements for XYZ Ltd for the financial years ended 31 March 2018, 2021, 2022, 2023, and 2024. Show your workings.

Part B:

Assume XYZ changed to the revaluation model on 1 October 2020. Complete the financial statements for XYZ Ltd for the financial years ended 31 March 2018, 2021, 2022, 2023, and

2024. Show your workings.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Psychology
1.2K views

Using the below articles: In two or three sentences identify a psychological perspective and explain how it...

Physics
1.2K views

The reading of a high resistance voltmeter when a cell is connected across it is...

Basic Math
1.2K views

Exercise 6.16 presents the results of a poll where 48% of 331 Americans who decide...

Calculus
1.2K views

Write a rational function that has the vertical asymptote x 1 and the horizontal asymptote...

Algebra
1.2K views

A polynomial function g x with integer coefficients has a leading coefficient of 5 and...

Accounting
1.2K views

What effect does the use of expected returns on pension investments and the deferral of...

Accounting
1.2K views

please fill out Absorption Income Statement sheet ...

Accounting
1.2K views

A machine costing $212,800 with a four-year life and an estimated $16,000 salvage...

Accounting
1.2K views

Un anlisis de los costos de mantenimiento pasados indica que el costo de mantenimiento es...

Accounting
1.2K views

ABC Insurance Company reported the following information on its accounting statements last year: What was...

Accounting
1.2K views

You took a mortgage for $ 85,000 7 years ago @ 25 years @ 8.5%....

Finance
1.2K views

Stock A has an expected return of 18% and a beta of 1.3. Stock B...