Q: At 31 October 20X9, Lytax Ltd was engaged in the following
At 31 October 20X9, Lytax Ltd was engaged in the following five long-term contracts. In each contract Lytax was building cold storage warehouses on five sites where the land was owned by the customer....
See AnswerQ: Newbild SA commenced work on the construction of a block of flats
Newbild SA commenced work on the construction of a block of flats on 1 July 20X0. During the period ended 31 March 20X1 contract expenditure was as follows: € Materials issued from stores …………………….13...
See AnswerQ: Quick build Ltd entered into a two-year contract on 1
Quick build Ltd entered into a two-year contract on 1 January 20X7 at a contract price of £250,000. The estimated cost of the contract was £150,000. At the end of the first year the following informat...
See AnswerQ: The following information relates to Deferred plc: ● EBITDA (
The following information relates to Deferred plc: ● EBITDA (earnings before interest, tax, depreciation and amortization) for year ended 31.12.20X1 is £300,000 ● No interest payable in 20X1 ● No amor...
See AnswerQ: During 2006, Jack Matelot set up a company, JTM,
During 2006, Jack Matelot set up a company, JTM, to construct and refurbish marinas in various ports around Europe. The company’s first accounting period ended on 31 October 2006 and...
See AnswerQ: Backwater Construction Company is reviewing a major contract which is in serious
Backwater Construction Company is reviewing a major contract which is in serious difficulty. The contract price is €10,000,000. The project involves the construction of four buildings of equal size an...
See AnswerQ: (a) Assume that on 1 January 20X7 Parent Ltd acquired
(a) Assume that on 1 January 20X7 Parent Ltd acquired all the ordinary shares in Daughter Ltd for £10,800 cash. The fair value of the net assets in Daughter Ltd was their book value. (b)...
See AnswerQ: (a) In 20X3 Arthur is a large loan creditor of
(a) In 20X3 Arthur is a large loan creditor of X Ltd and receives interest at 20% p.a. on this loan. He also has a 24% shareholding in X Ltd. Until 20X1 he was a director of the company and left after...
See AnswerQ: (a) On 1 January 20X7 Parent Ltd acquired all the
(a) On 1 January 20X7 Parent Ltd acquired all the ordinary shares in Daughter Ltd for £16,200 cash. The fair value of the net assets in Daughter Ltd was their book value. (b) The purchase...
See AnswerQ: Simple SA has just purchased a roasting/salting machine to produce
Simple SA has just purchased a roasting/salting machine to produce roasted walnuts. The finance director asks for your advice on how the company should calculate the depreciation on this machine. Deta...
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