3. On 31 December 2018, Quarry Company found that some accounting treatments were wrongly (1) (2) made: Purchase of furniture of $15,000 was entered in the repairs account. Purchase of stationery of $10,000 was entered in the furniture account. (3) Repairs expenses of $2,000 were entered in the furniture account. The company provides depreciation on the straight-line basis at 25% per annum. All non-current assets are expected to have no residual value. The company closes its accounts on 31 December Required: (a) (b) was (c) shown in each year. Calculate the additional annual depreciation for the furniture acquired in 2018. Calculate the corrected profit for 2018, given that the net profit before adjustment $43,650. Calculate the corrected cost of furniture at the end of 2018 assuming the cost the account before adjustment was $128,960. 1 (10 marks) 4. A company commenced business on 1 May 2011, and purchased some sets of computers for its operations. The statement of financial position as at 31 December 2013 showed the following: Computers at cost Less: Accumulated depreciation Net book value $ 80,000 48,000 32,000 The company calculated depreciation charges using the straight-line method. Full year depreciation was provided in the year of acquisition and no depreciation was provided in the year of disposal. The company did not make any other purchase of computers in the last three years. Required: (a) the Recompute and the Assume the company changed the depreciation using the straight-line method to reducing-balance method and the depreciation rate was 40% per annum. the depreciation charges for the years 2011, 2012 and 2013. (b)(i) Continued from (a), calculate the differences on net profit in the years 2011, 2012 2013 after the change in depreciation method. (ii) State ONE situation in which the change in depreciation method does not violate consistency principle. ~END~ (9 marks)