Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. (ii) broadoak acquired a 12-year lease en a proper

(ii) Broadoak acquired a 12-year lease en a property on 1 October 2016 at a...

60.1K

Verified Solution

Question

Accounting

image
(ii) Broadoak acquired a 12-year lease en a property on 1 October 2016 at a cost of S240,000. The company policy is to revalue its properties to their market values at the end of each year. Accumulated amortization is eliminated and the property is restated to the revalued amount. Annual amortization is calculated on the carrying values at the beginning of the year, The market values, of the property on 30 September 2017 and 2018 were $231,000 and $175,000 respectively, The existing balance on the revaluation reserve at 1 October 2016 was S50,000. This related to some non-depreciable land whose value had not changed significantly since 1 October 2016. Required: Prepare extracts of the Fiancial statements of of Broadoak. (including the movement on the revaluation reserve) for the years to 30 September 2017 and 2018 in respect of the leasehold property (2.5 Marks)

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

Q

A project has annual cash flows of $8,000 for the next 10 years and then $8,000...

Finance
Q

A.) Calculate the enthalpy change, ΔH, for the process in which 37.9 g of water is...

Chemistry
Q

Discuss the function of central nervous system reflexes. Describe two brain and five spinal reflexes. Be...

Medical Sciences
Q

Using the concepts taught in this course, explain clearly why an accident on a freeway during...

General Management
Q

You are given the following information on Kaleb's Kickboxing: Profit margin 6% Capital intensity ratio 0.7...

Accounting
Q

What are hormones may be proteins may be sugars special cells special fluids in the...

Biology
Q

Identify the asymptotes domain and range o f x 5 X 2 f x 4...

Algebra
Q

Find the values of x and y using pseudoinverse X 3y 5x 7y 11x 13y...

Algebra
Q

Use Goal Seek to determine the access price per copy that the publisher must charge...

Accounting
Q

Question 7 Wiew Policies Current Attempt in Progress Prepare tabular summaries to record these transactions....

Accounting
Q

On the 1st of January 2020, the beginning of the financial year, SPEEDY COURIERS opened...

Accounting
Q

1) Considering the four projects that we discussed and last sessions calculations for WACC1, WACC2...

Finance