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:

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Accounting

ISBN: 978-1118608227

9th edition

Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett

Question Posted: