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Question: consider the following information that relates to five different items...

Question details

Consider the following information that relates to five different items of plant and equipment at the reporting date:

 

 

 

Asset

 

Carrying amount

 

$

 

Fair value

 

$

 

Costs of disposal

 

$

 

Value in use

 

$

 

A

 

100 000

 

105 000

 

3 000

 

110 000

 

B

 

  50 000

 

  45 000

 

1 000

 

  48 000

 

C

 

  80 000

 

  85 000

 

2 000

 

  82 000

 

D

 

200 000

 

190 000

 

5 000

 

220 000

 

E

 

120 000

 

120 000

 

3 000

 

115 000

 

 

 

Required

 

a) Calculate the recoverable amount for each of the five plant and equipment assets.

 

B) Assuming plant and equipment is carried under the revaluation model, determine the amount of any revaluation adjustment necessary for each of the five assets.?

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