According to FRS 16 Property, Plant and Equipment, when selling property, plant and equipment for cash:
The seller recognises a gain or loss for the difference between the cash received and the fair value of the asset sold.
The seller recognises losses, but not gains.
None of the listed options.
The seller recognises a gain or loss for the difference between the cash received and the book value of the asset sold.
A retailer purchased its inventories at $100 per unit. The import duties was $7 per unit. The transportation costs was $1 per unit. The retailer purchased 100 units and a bulk discount of 1% was given. The inventories purchased were held in the warehouse and the storage costs was $500 in total. What is the costs of the inventories purchased?
$9,900
$10,000
$10,692
$11,192
Guardian Medical Supplies Ltd has the following information for its surgical equipment inventory. The selling price of the inventory is $240. The cost of the inventory is $190. The costs to sell the inventory is $20. Under FRS 2 Inventories, how should Guardian report this inventory item on its balance sheet?
$170
$220
$240
$190