Non-current Assets
(a) Consider a non-current asset such as a rental property. Explain how such a non-current asset can be valued using different methods (or measurements of value), as detailed in the NZ Conceptual Framework and NZ IAS 16.
Write about 1-2 paragraphs
(b) Consider a non-current asset such as an aircraft. Explain how costs related to such a non-current asset are recognised. Hint: There are initial costs, recurring (or operating) costs, costs to repair and maintain, and costs to improve (or upgrade).
Write about 1-2 paragraphs
(c) On 20 April 2022, Pear Ltd acquired Tangerine Ltd for $76,000 cash. Both assets and liabilities were acquired including: Accounts Receivable $13,000, Inventory $21,000, Equipment $43,000 and Accounts Payable $8,000. Required: Record this acquisition in Pear Ltd’s general journal (note that a narration is not required).
