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CAAT Traders acquired machinery on 1 July 2018 for an amount of R175 300. This machinery was only available for use from 1 September 2018
CAAT Traders acquired machinery on 1 July 2018 for an amount of R175 300. This machinery was only available for use from 1 September 2018 due to massive testings that needed to be performed first. CAAT Traders' current financial period ends on 31 May 2019. According to CAAT Traders accounting policy, depreciation on machinery is provided using the unit of production method over it's the useful life of 5 years according to the following production schedule Year 1 Year 2 Year 3 Year 4 Year 5 15 000 13 000 11 000 10 500 10 500 Expected unit of production Actual units produced 9 000 NA N/A N/A NIA The amount for depreciation expenses to be shown in the statement of profit or loss and other comprehensive income for the year ended 31 May 2019 will be ..? (round off your final answer to the nearest Rand) A. R21 193 B. R35 060 C. R19 721 D. R105 180 E. R26 295
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