Peter purchased a tractor for R350 000 on 1 September 2019. He estimated the residual value at R120 000 and depreciate it at 15% per year using the diminishing balance method how do I calculate the book value of the tractor at 31 March 2022
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Peter purchased a tractor for R350 000 on 1 September 2019. He estimated the residual value at
R120 000 and
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- Peter purchased a tractor for R350 000 on 1 September 2019. He estimated the residual value at R120 000 and depreciate it at 15% per year using the diminishing balance method.Peter purchased equipment for R240 000 on 1 June 2020. He decided to sell it for R135 000 on 31 December 2021 and replace it with new equipment of R285 000 on the same day. Peter depreciates his equipment over a period of four years. All his equipment was bought cash. What are all the entries relating to the equipment in the general journals of Peter’s financial records until 31 March 2022Sawyer bought an office equipment for £14,000 on 1 July 2019.It is expected to have a useful life of 4 years. If depreciation is to be provided at 30% on the reducing-balance basis. What is the depreciation charge for the year second year? a.E1,260 b.£2940 c.E4,200 d.£2,310Sally Kremer purchased a computer for $9,120 on July 1, 2020. She intends to depreciate it over 4 years using the double-declining-balance method. Salvage value is $1,140. Compute depreciation for 2021. Depreciation for 2021 $Type your answer here
- Norah purchased a machine for RM100,000 on 1 July 2017. The machine has an estimated useful life of five years and a residual value of RM10,000. What is the carrying value (net book value) of the machine at 30 June 2020? A RM18,000. B RM10,000. C RM46,000. D RM54,000.Ahmad bought a new equipment at RM120,000 on 1 July 2017. He was undecided whether to depreciate the equipment using straight line method or reducing method at 20% per annum. The equipment is expected to have no residual value. You are required to calculate the amount of depreciation to be charged against each financial year ending 31 December 2017, 31 December 2018 and 31 December 2019 using the straight line method and reducing balance method. Show your answer in the following format : Financial Year ending : Straight Line Method Reducing Balance Method RM RM 31 December 2017 31 December 2018 31 December 2019b. The following are balances brought forward from 31 December 2018 for KC Deco Center : RM RM Motor Vehicles 100,000 Less : Provision for depreciation (20,000) 80,000 The motor vehicles were depreciated at 15% per annum using reducing balance method. KC bought a new vehicle on 1 October 2019, cost of the new vehicle was RM120,000. You are required to prepare the following…A certain machinery costs P 1,021,778 which will last for 18 years with a salvage value of P 144,755. Money is worth 20%. If the owner decides to sell it after using it for 6 years, what should his price be so that he will not lose or gain financially in the transaction?
- Lebo purchased a machine on 1 January 2019 for R1 500 000. The company incurred installation costs of R30 000, testing costs of R15 000, and R10 000 of insurance for the first year of operation. The machine has an estimated useful life of five years and is expected to produce 10 000 000 units over its life span, with an estimated residual value of R125 000. 1.Calculate the initial value of the machine. 2.What is the book value of the machine after three years using the reducing balance method? Assuming the rate of depreciation is 40%. Compare the impact of the straight-line method reducing balance and units of production methods method on each of the following: (i) Trend on depreciation expense over the five-year life (ii) Trend on net income over the five-year life (iii) Cash flow from operations over the five-year life (iv) Debt-to-equity ratio (v) PPE (fixed assets) turnoverGetaway Inc. bought a machine on January 1, 2021 for $50,000. Getaway plans to keep the machine for 10 years. What is the machine's carrying value on June 30, 2023 assuming Gateway uses straight-line depreciation?19. Ali sells a machine for RM50,000 cash on 30 April 2020. The machine cost RM100,000 when it was purchased and has a carrying value of RM65,000 at the date of disposal. What are the journal entries to record the disposal of the machine? a) Dr Accumulated depreciation RM35,000 : Dr Loss on disposal RMI5,000 ; Dr Cash RM50,000; Cr Non- current assets - cost RM100,000 b) Dr Accumulated depreciation RM65,000 ; Dr Loss on disposal RM35,000; Cr Non-current assets - cost RM100,000 c) Dr Accumulated depreciation RM35,000 ; Dr Cash RM50,000 : Cr Non-current assets RM65,000: Cr Profit on disposal RM20,000 d) Dr Non-current assets RM65,000 ; Dr Accumulated depreciation RM35,000 ; Cr Cash RMS0,000 ; Cr Profit on disposal RM50,000
- During the beginning of 2021, Jambilee Company purchases a new machine worth P8,000,000, The new machine has an estimated useful life of 8 years and the estimated residual value is P800,000. Q1. What will be the value of accumulated depreciation in the year of 2021? Q2. What will be the carrying amount of the machine on December 31, 2022?Lexia bought a new equipment at RM120,000 on 1 July 2017. He wasundecided whether to depreciate the equipment using straight line method or reducing method at 20% per annum.The equipment is expected to have no residual value.You are required to calculate the amount of depreciation to be charged against each financial year ending 31 December 2017, 31 December 2018 and 31 December 2019 using the straight line method and reducing balance method.st On 1 January 2019, a machine was bought by ABC Company at a cost of OMR 70,000. The machine has a useful life of 5 years and a salvage value OMR 2,000. How much is the book value at the end of the year 2019 using straight line method? a. OMR 13,600 b. OMR 50,000 c. OMR 56,400 d. OMR 68,000