Question
Barometer Ltd operates four types of equipment which are used in various functions. The management of the firm has decided to use different depreciation method
Barometer Ltd operates four types of equipment which are used in various functions. The management of the firm has decided to use different depreciation method to determine depreciation charges to each of the equipment. Information about the equipment is available below
Equipment type | Date acquired | cost | Residual value | useful life | depreciation method |
1 | 1/9/15 | $95400 | $10000 | 8years | Diminishing balance |
2 | 1/10/15 | $148000 | $15000 | 6years | sum-of-years'-digital |
3 | 1/1/16 | $27500 | $5500 | 10years | straight-line |
4 | 15/4/15 | $39800 | $4600 | 20000 hours | production units |
production units
The usage of equipment 4 was 1 000 hours in the year ended 30 June 2015, 1 200 hours in the year ended 30 June 2016 and 3 200 hours in 2017.
Required:
Assuming the financial year ends is on 30 June and that depreciation is recorded to the nearest month, calculate the depreciation charge for 20162017 financial year of each equipment using its respective method (round your answer to closest dollar and show all your working).
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