Question
During the year ended 31 August 20.8, the following transactions took place pertaining to vehicles: On 28 February 20.8, a new vehicle was bought for
During the year ended 31 August 20.8, the following transactions took place pertaining to vehicles:
On 28 February 20.8, a new vehicle was bought for R231 000 cash.
On 1 June 20.8, an old vehicle, which had been bought on 1 December 20.5 for R280 000, was sold on credit for R157 500.
Sorvina Traders depreciates all their vehicles at a rate of 20% per annum according to the reducing balance method. Ignore VAT.
QUESTIONS
Calculate the accumulated depreciation on the vehicle sold up to the date of sale
Calculate the depreciation on the new vehicle for the financial year ended 31 August 2018
Calculate the accumulated depreciation on the vehicle sold as at 1/9/2017
Calculate the total depreciation on the old remaining vehicles for the financial year ended 31 August 2018
Step by Step Solution
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SOLUTION To calculate the accumulated depreciation on the vehicle sold up to the date of sale we need to determine the depreciation expense that has b...
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
