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Carrying values($)

Tax bases($)

Assets

 

 

Cash

60 000

60 000

Accounts receivable (net)

50 000

60 000

Prepaid insurance

20 000

 

Inventory

80 000

80 000

Plant—net

450 000

400 000

Land

   600 000

  400 000

 

1 260 000

1 000 000

Liabilities

 

 

Accounts payable

60 000

60 000

Provision for long-service leave

30 000

 

Provision for warranty

40 000

 

Loan payable

 400 000

 400 000

 

 530 000

 460 000

Net assets

 730 000

 540 000

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