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original cost of the asset with the proceeds received from its sale.
book value of the asset with the asset’s original cost.
book value of the asset with the proceeds received from its sale.
replacement cost of the asset with the asset’s original cost.
4-
IFRS Multiple Choice Question 326
Salem Company hired Kirk Construction to construct an office
building for £8,000,000 on land costing £2,000,000, which Salem
Company owned. The building was complete and ready to be used
on January 1, 2013 and it has a useful life of 40 years. The price of
the building included land improvements costing £600,000 and
personal property costing £750,000. The useful lives of the land
improvements and the personal property are 10 years and 5
years, respectively. Salem Company uses component depreciation,
and the company uses straight-line depreciation for other similar
assets. What is the net amount reported for the building on Salem
Company’s December 31, 2013 statement of financial position?
£7,573,750
£6,483,750
£7,800,000
£7,665,000
5- Multiple Choice Question 77
Yocum Company purchased equipment on January 1 at a list
price of $100,000, with credit terms 2/10, n/30. Payment was made
within the discount period and Yocum was given a $2,000 cash
discount. Yocum paid $5,000 sales tax on the equipment, and paid
installation charges of $1,760. Prior to installation, Yocum paid