QUESTION: 29

CORRECT TEXT
An entity bought a capital item for $110,000 on 1 March 20X4 incurring legal fees at the date of purchase of $2,500.
On 1 May 20X4 additional costs classified as capital expenditure by the tax rules of the country of $25,000 were incurred in respect of the asset. On 1 June 20X4 repairs not classified as capital expenditure were incurred at a cost of $15,000.
The asset was sold for $250,000 on 30 November 20X8 and costs to sell were incurred of $4,300.
Calculate the chargeable gain on the disposal.
Give your answer to the nearest $.

$108200

Answer(s): A

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QUESTION: 30

Which THREE of the following would be included in a cash budget?

Interest payments
Depreciation on machinery
Salaries paid to staff
Impairment of goodwill
Profit on disposal of motor vehicle
Dividends received from associate

Answer(s): A,C,F

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QUESTION: 31

CORRECT TEXT
The following information relates to a single asset:

*Original cost of $186,000
*Estimated residual value of $6,000
*Expected useful life of 10 years
*Accumulated depreciation at 31 December 20X5 of $66,960 *Annual depreciation rate of 20% on a reducing balance basis Calculate the amount of depreciation that should be charged to profit or loss for the year ended 31 December 20X6.
Give your answer to the nearest whole number.

$23808

Answer(s): A

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QUESTION: 32

BBB has been experiencing liquidity problems and currently has an overdraft with the bank.
Which THREE of the following would be appropriate measures to help address this problem?

Reduce the selling price of goods to reduce the holding of stock.
Offer early settlement discounts to encourage debtors to pay more quickly.
Sell some surplus fixed assets.
Invest in a short term deposit with the bank.
Shorten the time taken to pay creditors.
Pay a dividend to shareholders.

Answer(s): A,B,C

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