ANNEXURE F: FORMATIVE ASSESSMENT 1 QUESTION 1 (35 marks) Aladdin's Carpets (Pty) Ltd is a company that manufactures carpets and home dcor- related products such as curtains and blankets. The company uses various industrial machinery required to manufacture the products. The following balances existed in the Statement of Financial Position at 30 June 2021: Machinery Accumulated depreciation: Machinery 2 750 000 1 430 000 The following transactions relating to Machinery occurred during the financial year ended June 2022: A new machine (Machine A) was purchased from an overseas supplier and paid for on 1 January 2022. The machine was purchased FOB destination point for 13 000 USD. The destination point was Aladdin's Carpets (Pty) Ltd's city's seaport. The machinery arrived at Aladdin's Carpets (Pty) Ltd's city's seaport on 15 January 2022. Transportation costs relating to the delivery of this new machinery from the seaport to Aladdin's Carpets (Pty) Ltd's premises cost R9 000 and were paid in cash on the same day (15 January) after it arrived at their premises. The following were exchange rates existed on the various dates: Exchange rate 1 January 2022 15 January 2022 Lo Not US cas Rand: USD 15.30: 1 15.25: Machine A was installed in a workstation at Aladdin's Carpets (Pty) Ltd's factory c 1 February 2022 at a cost of R8 100 in cash after which it became available to u 216000+10% for making rugs. -R201 900+ 28100 = R210000 216000107 On 31 March 2022, existing outdated machinery (Machine B) was sold for R40 0 The machinery was originally purchased on 1 January 2018 at a cost of R74 00 On 1 May 2022, management decided that in order to be more profitable, the chinery purchased on 1 January 2022 i.e. Machine A would be used to create c