Question
Finally, the accountant has started the PPE and Depreciation Schedule for the year ended September 30, 2023. At Island Solutions, the depreciation policy is to
Finally, the accountant has started the PPE and Depreciation Schedule for the year ended September 30, 2023. At Island Solutions, the depreciation policy is to apply one months ownership, one months depreciation. Your team was provided with the following information.
Land and Building were acquired for $800 000 in a lump sum purchase. At the time of acquisition, the appraised values of the land and building were $90 000 and $810 000 respectively.
Equipment with an appraised value and residual value of $40 000 and $3 000 respectively was received by the company as a donation.
Machinery costing $182 900 inclusive of $600 installation expense and $14 900 normal repair and maintenance cost, and with a $6 000 estimated salvage value was sold on February 1, 2023.
2. Complete the PPE and Depreciation Schedule below by providing the values for [a] [j]. Show all workings. 16.5m
Assets Date of Acquisition Cost Residual Value Depreciation Method Estimated Useful Life (years) Annual Depreciation Expense at September 30 2022 2023 Land Oct 1, 2021 [a] - - - - - Building Oct 1, 2021 [b] $40 000 SLM [c] $13 600 [d] Equipment Oct 2, 2021 [e] 3 000 150% declining balance 10 [f] [g] Machinery Oct 2, 2021 [h] 6 000 SYD 8 [i] [j]
show all working please
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