Question
Earth Traders acquired machinery on 1 September 20.16 for an amount of R250 600. The current financial period of Earth Traders ends on 28 February
Earth Traders acquired machinery on 1 September 20.16 for an amount of R250 600. The current financial period of Earth Traders ends on 28 February 20.19. According to Earth Traders accounting policy, the depreciation on machinery is provided using the unit of production method over the useful life of 5 years according to the following production schedule:
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
Expected unit of production | 8 000 | 13 000 | 13 500 | 9 000 | 9 000 |
Actual units produced | 7 500 | 12 000 | 14 500 | N/A | N/A |
The amount for depreciation to be shown in the statement of profit or loss and other comprehensive income for the year ended 28 February 20.19 will be (Round off your final answer to the nearest Rand)
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