Brunswick Ltd operates four types of equipment. Because of their varied functions, management has decided that four
Question:
Brunswick Ltd operates four types of equipment. Because of their varied functions, management has decided that four different depreciation methods will be used to determine depreciation charges. Information on the equipment is summarised as follows:
Equipment type | Date acquired | Cost (net of GST) | Residual value | Useful life | Depreciation method | |||||
1 2 3 4 | 1/7/15 1/7/15 1/1/16 15/4/16 | $95 400 148 000 27 500 39 700 | $10 000 15 000 5 500 4 600 | 8 years 6 years 10 years 20 000 hours | Diminishing balance Sum-of-years’-digits Straight-line Production units |
Use of equipment type 4 was 1200 hours in the year ended 30 June 2016; 3200 hours in 2017; and 2600 hours in 2018.
Required
Assuming the financial year ends on 30 June and that depreciation is recorded to the nearest month, calculate the depreciation charges for 2016, 2017, 2018 and 2019 by preparing a schedule with the following headings:
Step by Step Answer:
Accounting
ISBN: 978-1118608227
9th edition
Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett