1By student name ProfessorUniversityDate: 16 September 2017.1 | P a g e
2ContentsQuestion no 26 ..............................................................................2Question no 15 ..............................................................................4Question no 2 ................................................................................5Question no 25 ..............................................................................6Question no 17 ..............................................................................7Question no 19 ..............................................................................8Question no 43 ..............................................................................9Question no 19 .............................................................................10References....................................................................................112 | P a g e
3Question no 26Total cost of the plantAmt in $Cost of power generator and associated technology12,550,000.0Cost obtaining in getti ng access to site2,500,500.0Power permits400,500.0Engineer's Fees1,100,500.0Total cost of the plant to the company16,551,500.0A plant is to be capitalised in the company’s books as on the date when it is ready for use i.e.,from the day when it is intended to be used for the purposes of the company. Here, it is 1st July.2018. Estimated useful life of the asset is 10 years here.Dismantling cost to be incurred at the end of the useful lifeAmount in $Dismantling cost of the plant750,500Cost of Environmental remediation1,249,500Cost of Replacing of flora and fauna100,000Total cost of dismantling to the company2,100,000Discount rate to be used by the company10%Present value of dismantling as on 1st July, 2018 (2100000, 10%, 10 years)809,641Total depreciable cost = 16,551,500 + 809,641 = 17,361,140Amount of depreciation each year = 17,361,140/10 = 1,736,114 [ CITATION Bae17 \l 1033 ]In the books of Modnight Boil Ltd.3 | P a g e
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