A company with financial year ending 31 October purchased a machine for R3 450 000 (VAT inclusive) on 1 January 2021 for cash. The following cost were incurred over the period January to March 2021 in respect of the machine:

Transport cost to delivery the machine to the factory premises.R11 400

Wages for the workers to offload and move the machine R16 000

R28 500 (excluding vat) was spent to purchase a part that the machine needs to enable it perform at maximum capacity:

A concrete stand was erected at a cost of R15 640 (VAT inclusive) for the machine.

The machine was brought into production from the 1^st of April 2021

The company directors estimated the machines residual value to be R42 300 (excluding VAT).

Depreciation is calculated on a straight-line basIs at 20% per annum.

On the 20^th of July 2021 the Machine was damaged by a hailstorm and it was repaired at a cost of RR18 600 (excluding vat).

Due to the inconsistence performance of the machine as a result of the effect of the damage sustained in the hailstorm, the directors decided to sell the machine on 31 October 2022 for R2 350 000 (excluding VAT)

You are required to calculate depreciation for the year ending 31^st October 2022.

Select one:

a. R405 911

b. R605 440

c. R650 420

d. R695 848