Platypus Ltd Has an Item of Plant with a Cost

question 2

Multiple Choice

Platypus Ltd has an item of plant with a cost of $4 200,000, and at 30 June 20X5 the accumulated depreciation was $600,000 and its estimated residual amount $200,000.Platypus Ltd has adopted the revaluation model for the class of assets, but the asset has not previously been revalued.
-At reporting date, the directors determined that the asset's fair value was $3,750,000 and the estimated cost to sell it was $250,000.The assets value in use (ViU) was estimated to be $3,400,000.What is the carrying amount of the asset at 30 June 20X5, and what type of revaluation - if any - was carried out during the reporting period and how was it recognised?

• A)carrying amount $3,500,000; revaluation increment $100,000 recognised by an increase in the asset revaluation reserve
• B)carrying amount $3,500,000; revaluation decrement $100,000 recognised by a decrease in the asset revaluation reserve
• C)carrying amount $3,500,000; revaluation decrement of $100,000 recognised as an expense
• D)carrying amount $3,700,000; revaluation decrement of $100,000recognised as an expense

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Definitions:

Sociologists

Scholars who study human societies, their interactions, and the processes that preserve and change them.

Indigenous Peoples

Ethnic groups who are the original inhabitants of a region, recognized for their distinct social, cultural, and economic practices, often marginalized by dominant cultures.

Educational System

An organized structure for delivering education to the population through a series of institutions, policies, and resources.

Credential Inflation

The increasing demand for higher educational qualifications for jobs that previously required lower qualifications, leading to devaluation of certain degrees.