The components of the cost of a major item of equipment are given below. Purchase price £780,000 Import duties £117,000 Site preparation £30,000 Installation £28,000 General overheads £50,000 1,005,000 What amount should be recognised as the cost of the asset, according to IAS 16 Property, Plant and Equipment?
Q2- A company estimated that its tax liability for the year ended 30 June 20X1 was £113,000. During the year to 30 June 20X2 the amount actually paid to Her Majesty’s Revenue and Customs (HMRC) was £108,000. The estimate for the tax liability for the year ended 30 June 20X2 is £129,000. What amounts should be recognised in the financial statements for the year ended 30 June 20X2?
Q3- An asset with a fair value of £15,400 is acquired under a finance lease on 1 January 20X1 with a deposit on that date of £4,000 and four further annual payments on 31 December each year. The interest rate implicit in the lease is 15% and the actuarial method is used to allocate interest to accounting periods over the lease term. What is the total lease obligation (liability) at 31 December 20X1?
