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Dream House Construction Private Limited obtained a tender to construct RDP houses in Polokwane Municipality and because of the company's deteriorating construction equipment, the company
Dream House Construction Private Limited obtained a tender to construct RDP houses in Polokwane Municipality and because of the company's deteriorating construction equipment, the company purchased new machinery for R235 000. The company incurred transport and installation costs to the tune of R6 500 and R2 500 respectively. The machinery is going to be used for an estimated 8 years after which it will become valueless. Compute the machinery's depreciation schedule using the sum of year's digits method. (Your schedule should show opening carrying value, cost less residual value, depreciation fraction, depreciation amount, accumulated depreciation and closing carrying value for each year) (18)
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