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Hello please help with this depreciation questions. all the answers are not options meaning im clearly doing something wrong. Use the following information to answer
Hello please help with this depreciation questions. all the answers are not options meaning im clearly doing something wrong.
Use the following information to answer questions 1 to 8 On 31 March 2015, Laura Mapetla traded in an old machine, which had a purchase price of R12 000 and an accumulated depreciation of R8 000 on 31 December 2014, for a new machine costing R20 000. The machine was put in use on 1 Arpil 2015. The trade-in value of the old machine was R5 000. Laura provides for depreciation on machinery at 20% per annum according to the diminishing balance method. Ignore VAT for the purpose of this question. 1. The depreciation of the old machine for the financial year ended 31 December 2015, is ... . (1) R 600 (2) R 400 (3) R 200 (4) R3 000 (5) R2 000 2. Which of the following alternatives represent the total accumulated depreciation of the old machine at the date of trade in, 31 March 2015, if it is assumed the depreciation was R800 on 31 March 2015? (1) R 4 000 (2) R 8 800 (3) R 8 600 (4) R11 200 (5) R 8 000 3. The carrying amount of the old machine at date of trade-in on 31 March 2015, is ... if it is assumed that the depreciation and the accumulated depreciation were respectively R800 and R8 700 on 31 March 2015. (1) R12 000 (2) R 4 200 (3) R11 200 (4) R 3 300 (5) R 2 500 4. The profit/loss on disposal of the machine amounts to ... if it is assumed that the depreciation and the accumulated depreciation were respectively R800 and R8 700 on 31 March 2015. (1) R6 200 profit (2) R1 700 profit (3) R3 300 profit (4) R1 700 loss (5) R6 200 loss 5. The depreciation of the new machine for the financial year ended 31 December 2015, is .... (1) R1 000 (2) R4 000 (3) R3 000 (4) R 600 (5) R2 000 6. The depreciation amount that needs to be disclosed for machines in the statement of profit and loss and other comprehensive income for the year ended 31 December 2015, is ... if it is assumed that the depreciation and the accumulated depreciation on the old machine were respectively R800 and R8 700 and the depreciation on the new machine was R4 200. (1) R 5 000 (2) R 4 200 (3) R 800 (4) R 9 500 (5) R12 900 7. The carrying amount of property, plant and equipment at 1 January 2015, is... (1) R20 000 (2) R12 000 (3) R 8 000 (4) R 4 000 (5) R 3 800 8. The carrying amount of property, plant and equipment at 31 December 2015, is ... if it is assumed that the depreciation and the accumulated depreciation on the old machine were respectively R800 and R8 700 and the depreciation on the new machine was R4 200. (1) R27 000 (2) R18 300 (3) R15 800 (4) R20 000 (5) R19 100
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