Non Current Asset Flashcards
An entity purchased property for $6 million on 1 July 20X3. The land element of the purchase was $1 million. The expected life of the building was 50 years and its residual value nil. On 30 June 20X5 the property was revalued to $7 million, of which the land element was $1.24 million and the buildings $5.76 million On 30 June 20X7, the property was sold for $6.8 million.
What is the gain on disposal of the property that would be reported in the statement of profit or loss for the year to 30 June 20X7?
0.4 mio
Which of the following properties owned by Scoop would be classified as an investment property?
A A property that had been leased to a tenant but which is no longer required and is now being held for resale
B Land purchased for its investment potential Planning permission has not been obtained for building construction of any kind
C A new office building used as Scoop’s head office, purchased specifically in order to exploit its capital gains potential
D A stately home used for executive training
B
