Question
Beta Co purchased a new machine on 1 January 2020 for $220,000 (inclusive of GST), which it used to produce containers for its product for
Beta Co purchased a new machine on 1 January 2020 for $220,000 (inclusive of GST), which it used to produce containers for its product for sale to retailers. The machine has an effective life of 10 years. Beta Co uses the diminishing value method of calculating the decline in value of its machines.
What amount can Beta Co deduct for the decline in value of the machine for the 2020/21 income year? (Choose the closest amount)
| $22,000 | ||
| $39,612 | ||
| $36,011 | ||
| $21,940 | ||
| $19,945 | ||
| $20,000 |
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Accounting Principles
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
9th Edition
978-0470317549, 9780470387085, 047031754X, 470387084, 978-0470533475
