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:

Behaviorism

A psychological perspective focusing on observable behaviors and the external stimuli that influence them, often disregarding internal states.

Conditioned Stimulus (CS)

In classical conditioning, a previously neutral stimulus that, after being associated with an unconditioned stimulus, elicits a conditioned response.

Unconditioned Stimulus (UCS)

In classical conditioning, a stimulus that naturally and automatically triggers a response without prior conditioning.

Behaviorist Perspective

A view in psychology that focuses on observable behaviors and the ways in which they're learned, rather than on internal states like thoughts or feelings.