FAC3762 ASSIGNMENT 2 202 (100% pass guaranteed)

FAC 3762 Assignment 2
Solution
Unique number: 800077

Due date: 30 Aug 2021

, FAC3762 ASSIGNMENT 2 OF 2021
QUESTION 1
(a) Notes to the annual statements of Plastics Ltd for the year ended31 December
2020

1. Profit before tax

Profit before tax is stated after taking the following into account

R
Depreciation 53 290
Total depreciation [109 430 (𝐶1) + 39 611 (𝐶2)] 149 041
Depreciation capitalised (95 751)

Net Finance Cost 20 720
Finance cost 20 720
Total interest expense [91 067 (𝐶1) + 105 787 (𝐶2)] 196 854
Interest expense capitalized [80 244 (𝐶1) + 95 890 (𝐶2)] (176 134)

Finance Income -
Total interest income 18 546
Interest income capitalized (18 546)



2. Property, plant & equipment

Plant
R
Carrying amount at beginning of year -
Cost -
Accumulated Depreciation -

Additions at cost 4 500 000
Interest capitalized [80 244 (𝐶1) + 77 344 (𝐶2)] 157 588
Depreciation capitalized (𝐶1) 95 751
Depreciation for the year (𝐶2) (39 611)
Carrying amount at end of year 4 713 728
Cost 4 753 339
Accumulated Depreciation (39 611)




FOR ACCADEMIC NEEDS CONTACT 065 160 9781/