ABC Ltd Company purchased machinery for $$20,000$ with an estimated useful life of four years

and a salvage value of $$4,000.$ ABC ltd uses the straight$-$line depreciation method. At a beginning

of the third year. ABC ltd reduces its salvage value estimate to $$1600.$ Determine the depreciation

expense for each year. $(5$ Marks$)$

At the beginning of the current year ABC ltd$.$ entered into business acquisition. As a result, ABC

reported the following intangible assets:

Patent $$4,80,000$

Franchise agreement $$3,50,000$

Copyright $$1,50,000$

Goodwill$$$$5,50,000$

Total $$1,530,000$

The patent expires in $12$ years. The franchise agreement expires in $7$ years but can be renewed

indefinitely at a minimal cost. The copyright is expected to be sold at the end of $20$ years for

$$30000.$ Use the straight$-$line amortization method to calculate the total carrying value of ABC's

intangible assets at the end of the year. $(10$ Marks$)$