FAC 3702 ASSIGNMENT 1

FAC3702 - Assignment 1 Suggested solution Question 1 FUN & GAMES LIMITED NOTES FOR THE YEAR ENDED 30 JUNE 2013 1. Profit before tax Income Fair value adjustment 1,605,000 Rental income 75,000 Profit on exchange of asset 25,000 Expenses Depreciation 90,741 Direct operating expense wrt investment property 27,500 2. Property, plant and equipment Land Buildings Motor vehicle Total Carrying amount at beginning of the year 750,000 795,333 200,000 1,745,333 Cost 750,000 845,000 250,000 1,845,000 Accumulated depreciation 0 (49,667) (50,000) (99,667) Additions 175,000 175,000 Derecognition (150,000) (150,000)