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Exam (elaborations)

Fac 2601 Assessment 2 Semester 2 2024 Guranteed Distinction

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FAC 2601 ASSESSMENT 2 SEMESTER 2 2024 GURANTEED DISTINCTION

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4/10/24, 6:01 PM Assessment 2 (page 1 of 4)




 Dashboard Calendar


Dashboard / My courses / FAC2601-24-S1 / Welcome Message / Assessment 2


Question 1
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Bold Ltd purchased machinery on 1 January 2021 at a cost of R1 200 000. A major inspection has to be carried out on the machinery
every three years. The last inspection performed on the machine was on 31 December 2020 by the seller and the inspection costs were
included in the purchase price. On the acquisition date, the present value of future expected inspection costs to be incurred was
estimated at an amount of R240 000. On the acquisition date the estimated useful life of 10 years was allocated to the machine. The
inspection component is part of the machine and not a separate asset.

The total depreciation on the machinery (including depreciation on the inspection component) for the year ended 31
December 2023 is:




1. R144 000

2. R104 000

3. R200 000

4. R176 000




Question 2

Not yet answered

Marked out of 2.00




Bold Ltd purchased machinery on 1 January 2021 at a cost of R1 200 000. A major inspection has to be carried out on the machinery
every three years. The last inspection performed on the machine was on 31 December 2020 by the seller and the inspection costs were
included in the purchase price. On the acquisition date, the present value of future expected inspection costs to be incurred was
estimated at an amount of R240 000. On the acquisition date the estimated useful life of 10 years was allocated to the machine. The
inspection component is part of the machine and not a separate asset.

The carrying amount of the machinery (including the inspection component) for the year ended 31 December 2021 is:




1. R1 024 000

2. R1 000 000

3. R1 124 000

4. R1 056 000

,4/10/24, 6:01 PM Assessment 2 (page 1 of 4)

Question 3
Not yet answered

Marked out of 2.00


Dashboard Calendar

Assume that all the information of Bold Ltd given in questions 1 and 2 remains applicable with the exception of a change in the period
Dashboard / My courses / FAC2601-24-S1 / Welcome Message / Assessment 2
of the new inspection costs. Due to several factors that occurred during the current financial year, instead of the inspection being
completed every three years as planned, the new inspection costs need to be done after 30 months. The cost of the first inspection
amounted to R300 000.

The inspection costs derecognised in the property, plant and equipment note for the period 31 December 2023 is:




1. R120 000

2. R80 000

3. R240 000

4. R40 000




Question 4

Not yet answered

Marked out of 2.00




Assume that all the information of Bold Ltd given in questions 1 and 2 remains applicable with the exception of a change in the period
of the new inspection costs. Due to several factors that occurred during the current financial year, instead of the inspection being
completed every three years as planned, the new inspection costs need to be done after 30 months. The cost of the first inspection
amounted to R300 000.

The total depreciation on the machinery (including depreciation on the inspection component) for the year ended 31
December 2023 is:




1. R236 000

2. R196 000

3. R124 000

4. R186 000

, 4/10/24, 6:01 PM Assessment 2 (page 1 of 4)

Question 5

Not yet answered

Marked out of 2.00


Dashboard Calendar

Assume that all the information of Bold Ltd given in questions 1 and 2 remains applicable with the exception of a change in the period
Dashboard / My courses / FAC2601-24-S1 / Welcome Message / Assessment 2
of the new inspection costs. Due to several factors that occurred during the current financial year, instead of the inspection being
completed every three years as planned, the new inspection costs need to be done after 30 months. The cost of the first inspection
amounted to R300 000.

The gross carrying amount of the machinery (including the inspection component) for the year ended 31 December 2023 is:




1. R960 000

2. R900 000

3. R1 260 000

4. R1 000 000




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