Waverley Ltd Sold a Non-Current Asset to Park Ltd on 1

question 27

Multiple Choice

Waverley Ltd sold a non-current asset to Park Ltd on 1 January 20X0 for a profit of $100 000.The sale proceeds was $1 000 000.Waverley Ltd had paid $1 800 000 for this asset.Both companies have a financial year end of 31 December.Waverley was depreciating this asset straight-line over a total useful life of 10 years to a zero residual amount.The asset had a carrying amount of $900 000 on the sale date.Park Ltd uses the same useful life and residual value as Waverley Ltd.What is the last financial year that elimination entries will be required for this asset? The financial year ended 31 December:

• A)2004
• B)2005
• C)2006
• D)None of the above

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Definitions:

Dissociative Identity Disorder

A mental disorder characterized by the presence of two or more distinct personality states or identities within a single individual, along with memory gaps beyond ordinary forgetfulness.

Personality Disorder

A form of psychological disorder marked by persistent, unhealthy patterns of thought, behavior, and internal experience, apparent in various situations.

Financial Records

Documents that track and provide information about an individual's or organization's financial activities and health.

Decision Making

The brain's method of deciding which one of many different options to pursue.