Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. question 3 (26 marks) 3.1 use the information bel

QUESTION 3 (26 Marks) 3.1 Use the information below to answer the required question...

70.2K

Verified Solution

Question

Accounting

QUESTION 3 (26 Marks)

3.1 Use the information below to answer the required question (12 marks) INFORMATION XUZ Ltd purchased a building on 1 October 2021. The following costs were incurred:

Original purchase price R4 620 000

Admin and overhead R 225 000 Transfer/Legal fees R 300 000

The building had a residual value of R400 000 and an estimated useful life of 20 years On 31 December 2021, the fair value was R445 000, costs to sell R100 000 and restructuring costs R125 000 and the value in use was R425 000. Assume a tax rate of 28 % REQUIRED: Calculate the impairment loss for the year ended 31 December 2021

3.2 Prepare the journal for the impairment loss and tax implications, for the impairment loss as identified in

3.1 (5 marks) 3.3 Taking into consideration the impairment of assets, what is the indicator review and what factors the indicator review depends on? Briefly discuss (5 marks)

3.4 The relevant cash flows are those cash inflows and outflows that can be directly linked to the use of an asset or cash generating unit. To establish these cash flows, discuss what factors need to be considered? (4 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

44 11 Happ New Yea Juan Val

Statistics
Q

4 This graph shows the downward trend of sea ice over 32 years Average Monthly...

Biology
Q

Question 6 Points 1 Why did people doubt Kennedy would be a good candidate O...

Biology
Q

In the following cross P generation the genes are inherited independently not linked except for...

Biology
Q

Question 5 0 5 points Listen 6 Use the definition of the derivative to determine...

Calculus
Q

F x x 3x 2x 8x 4 Find first second third derivative

Calculus
Q

Equipment is found on the Select one: a. Income...

Accounting
Q

Sunland Company is trying to determine the equivalent units for conversion costs with 4700 units...

Accounting
Q

(15 points - 3 each) Assuming a statement of cash flows is prepared using the...

Accounting
Q

Billy owns a bakery that makes fancy breads and desserts. Think about the activities you...

Accounting
Q

Crane's sells two products, a pepper relish with a selling price of $5.16 and a...

Accounting
Q

Jake, a veterinarian, is engaged in a specified service trade or business. He is single,...

Accounting