a useful life of five years with a scrap value of 10% of its cost at the end of this period. The company policy is to write off assets on a straight line basis over its useful life. The book value of the asset at the time of sale is: A. R960000 B. R1200000 C. RO D. R1 350000 E - Debtors settle their accounts as follows: - 80% in the month after the sale and they get a 5% discount - 20% two months after the sale The total credit sales for January and February amount to: A. R340000 B. R102 000 C. R238000 D. R180 000 straight line basis over its useful life. The profit on sale of the equipment (before tax) is: A. R180000 B. (R300 000) C. R1 100000 D. R300000 forecast (units) for the first quarter of the next year is as follows: lanuary 2300 February 1400 March 1600 The projected production (UNITS) for January is: A. 2440 B. 2300 C. 2210 D. 2390 equipment will result in an increase in net working capital of R140 000 . The total initial investment will amount to: A. (R1 320000) B. R1 460000 C. (R1 460000) D. (R1200000) Administrative and selling expenses are expected to amount to R5 per unit. The total cost of production is: A. R5 040000 B. R2 880000 C. R5 400000 D. R4 320000 All of the following can be used to forecast sales, except for: A. Market tests and market research B. Statistical analysis C. Customer surveys D. Production during the previous period straight line basis over its useful life. Tax is paid at 28%. The tax payable on the sale of the equipment is: A. (R50 400) B. (R308 000) C. (R84000) D. (R224000) The total cost of production is: A. R2 400000 B. R3 600000 C. R4 200000 D. R1 800000