Question

At the time of dissolution, a firm did not provide any information regarding the realisation of the following assets:

P: Freehold Premises

Q: Office Equipment

R: Goodwill

S: Furniture

Choose the assets to be realised at the book value of the firm.

Options

• P, Q, R

• P, Q, S

• P, R, S

• Q, R, S

Answer 1

P, Q, S

Explanation:

P (Freehold Premises): Tangible - Realised at Book Value.

Q (Office Equipment): Tangible - Realised at Book Value.

R (Goodwill): Intangible - Realised at Nil.

S (Furniture): Tangible - Realised at Book Value.