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all the information given for the question. Question 1 20 Marks Tokyo Ltd has two types of equipment. The management decided that different depreciation methods

all the information given for the question.

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Question 1 20 Marks Tokyo Ltd has two types of equipment. The management decided that different depreciation methods should be applied in determining the annual depreciation charges. Information on the equipment is summarised as follows (ignore GST). E qui pm ent Date Cost Depreciation Depreciation Type Acquired Rate Method {Annu ally} 1July 2013 235 200 30 000 m Diminishing balance -_ 1Januar 2021 130 000 mumm Required: {a} Assuming the depreciation is recorded to the nearest month, calculate the depreciation charges for the year ended 30 June 2021. {10 marks} {b} Prepare the journal entries for the year ended 30 June 2021 [4 marks} {c} Explain the factors causing a depreciable asset to have a limited useful life (6 marks}

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