In: Accounting
Multiple Choice
1) Lease Payments, Prepayments, Intial direct Cost, Loading Unloading are included in Lease valution while any Incentive received is deducted.
In the above question ans will be
d) Internal Cost
2) For Lease Payment Market Implicit rate is taken for calculating Present Value in the given case it is 8%, and lease is recorded at present value therefore lease will be recorded at 170000*4.99271(i.e., annuity factor of 8%) =848761
therfore ans is
b) 828761
3)
1) Non current asset should be valued togeather
2) non Current asset must be revalued at fairvalue if revaluation model is adopted
3) Before Depreciable Asset are revalued the accumulated depreciation should be written back to asset account
therefore, in given case ans is
d)I and III
4)Revalued Asset Subsequently Valued down the loss is adjusted against balance available in revaluation surplus
thefore in given case ans is,
a) A decrease in revaluation surplus account