26 A machine was acquired for R160 000 on 1st July 2010. and another for R200 000 on 1st January 2010. The economic life of each machine is estimated at four years and the residual value 10% of cost. Machinery is depreciated using the sum of the year's digits method. The depreciation for the year to 31 December 2006 would be out of Select one: a R62000 con O b. R68 400 O C. R54000 O d. R61 200 27 If an accrual as at year-end of R1 500 was treated as a prepayment, the net profit for the year would be d out of question Select one: O a. overstated by R3 000 Ob understated by R1 500 O coverstated by R1 500 od understated by R3 000 28 Which of the following amounts appears in both the income statement and balance sheet? Lt Select one: O a Sales out of b. Dividends question O Net Income d. Accumulated depreciation