FAC2601
Assignment 2 Semester 1 2024
Unique Number:
Due Date: 10 April 2024
Question text
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.
DISCLAIMER & TERMS OF USE
1. Educational Aid: These study notes are designed to serve as educational aids and should not be considered as a
substitute for individual research, critical thinking, or professional guidance. Students are encouraged to
conduct their own extensive research and consult with their instructors or academic advisors for specific
assignment requirements.
2. Personal Responsibility: While every effort has been made to ensure the accuracy and reliability of the
information provided in these study notes, the seller cannot guarantee the completeness or correctness of all
the content. It is the responsibility of the buyer to verify the accuracy of the information and use their own
judgment when applying it to their assignments.
3. Academic Integrity: It is crucial for students to uphold academic integrity and adhere to their institution's
policies and guidelines regarding plagiarism, citation, and referencing. These study notes should be used as a
tool for learning and inspiration, but any direct reproduction of the content without proper acknowledgment and
citation may constitute academic misconduct.
4. Limited Liability: The seller of these study notes shall not be held liable for any direct or indirect damages,
losses, or consequences arising from the use of the notes. This includes, but is not limited to, poor grades,
academic penalties, or any other negative outcomes resulting from the application or misuse of the information
provided.
]
Assignment 2 Semester 1 2024
Unique Number:
Due Date: 10 April 2024
Question text
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.
DISCLAIMER & TERMS OF USE
1. Educational Aid: These study notes are designed to serve as educational aids and should not be considered as a
substitute for individual research, critical thinking, or professional guidance. Students are encouraged to
conduct their own extensive research and consult with their instructors or academic advisors for specific
assignment requirements.
2. Personal Responsibility: While every effort has been made to ensure the accuracy and reliability of the
information provided in these study notes, the seller cannot guarantee the completeness or correctness of all
the content. It is the responsibility of the buyer to verify the accuracy of the information and use their own
judgment when applying it to their assignments.
3. Academic Integrity: It is crucial for students to uphold academic integrity and adhere to their institution's
policies and guidelines regarding plagiarism, citation, and referencing. These study notes should be used as a
tool for learning and inspiration, but any direct reproduction of the content without proper acknowledgment and
citation may constitute academic misconduct.
4. Limited Liability: The seller of these study notes shall not be held liable for any direct or indirect damages,
losses, or consequences arising from the use of the notes. This includes, but is not limited to, poor grades,
academic penalties, or any other negative outcomes resulting from the application or misuse of the information
provided.
]
