Answer Happy

a) Define depreciation and state 3 importance of depreciation (5 marks) b) Okonkwo Fred Company Limited, a Ghana based firm acquired on Januly 1, 2018 and July 1, 2018, two factory plants from Arizona at a cost of $13,000.00 and $12,000 respectively and shipped each at a cost of $5,000.00. Duty and cost of installation cost $2,000%Given a foreign exchange rate of 4 Ghana cedi to I US Dollar, CAL Prepare the following statements i) Cost of Each Plant (6 marks) ii) Statement of Non-Current Assets for year ending, 2018 (4mark) iii) With an estimated useful life of 4 years for both plants, what is the depreciation rate? (2 marks) iv) How much profit or loss will the firm realize or suffer respectively if Plant A bought on January 1, 2018 was sold on January 1, 2019 for 80% its cost in () (5 marks) How much profit or loss will the firm realize or suffer respectively if Plant 3 bought on July 1. 2018 was sold on January 1 2019 for 90% its onst in ) (5 marks)