On 1 February 2014,Morinda Ltd Completes a Binding Agreement to Purchase

question 56

Multiple Choice

On 1 February 2014,Morinda Ltd completes a binding agreement to purchase a hydraulic lift from a manufacturer located in Germany.The cost of the equipment is €150 000.The construction of the lift is completed on 30 May 2014,and it is considered to be a qualifying asset according to AASB 123.The amount owing has not been paid by reporting date 30 June 2014.The following is information about the exchange rates: $$\begin{array} { | l | l | } \hline 1 \text { February } 2014 & \text { A\$1 } = € 0.60 \\\hline 30 \text { May } 2014 & \text { A\$1 } = € 0.56 \\\hline 30 \text { June } 2014 & \text { A\$1 } = € 0.46 \\\hline\end{array}$$ What entries are required to record the transaction and subsequent events in accordance with AASB 121 (rounded to the nearest whole A$) ?

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Definitions:

Emotional Support

Providing emotional support involves showing understanding and compassion to someone during their times of need, supplying a sense of comfort and security.

Restrictions

Limitations or constraints placed on activities, behaviors, or practices, usually through regulations or rules to ensure safety, compliance, or fairness.

Active Listening

Active Listening is the process of fully concentrating, understanding, responding, and remembering what is being said in a conversation.

Emotional Support

Assistance provided through understanding, empathy, and concern for one's well-being.