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The company acquired a property on 1 November 20X4 which it intended to sell. The property was obtained as a result of a default on a loan agreement by a third party and was valued at $20 million on that date for  accounting purposes which exactly offset the defaulted loan. The property is in a state of disrepair and Ryder intends to complete the repairs before it sells the property. The repairs were completed on 30 November 20X5. The property was sold after costs for $27 million on 9 December 20X5. The property was classified as 'held for sale' at the year end under IFRS 5 Non-current assets held for sale and discontinued operations but shown at the net sale proceeds of $27 million. Property is depreciated at 5% per annum on the straight-line basis and no depreciation has been charged in the year.

Requirements:

uHow the above item should be dealt with in the financial statements of Ryder for the year ended 31 Oct 2005?
Marks: 5

Answers submitted

Created by Ref Marking Action
Kawsar Ahmed's picture
Kawsar Ahmed
04/13/2021 - 03:28

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5