Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Gerald green purchased a new excavator for his landscaping business on 1 april 2019 at the cost of $114500 GSt exclusive. The estimated residual value

image text in transcribed

Gerald green purchased a new excavator for his landscaping business on 1 april 2019 at the cost of $114500 GSt exclusive. The estimated residual value is $9500/ the excavator has use life of 10 years and the business expects to use it for 25000 hours. It was used for 1800 hours in year 1; 2600 hours in year 2; 2100 hours in year 3; 2400 hours in year 4; 1900 hours in year 5. The end of financial year is 30 june. a) Calculate depreciation using the straight line method for 2019 and 2020 b) Prepare a depreciation schedule for the first 3 years ending June 30 using the diminishing balance depreciation method. Assume the depreciation rate to be double the straight line rate. c) Calculate depreciation using the units of production method (based on hours) for 2019 and 2020)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Myth Of Measurement Inspection Audit Targets And The Public Sector

Authors: Nick Frost

1st Edition

1529732662, 978-1529732665

More Books

Students also viewed these Accounting questions

Question

1. Outline the listening process and styles of listening

Answered: 1 week ago

Question

4. Explain key barriers to competent intercultural communication

Answered: 1 week ago