In the Depreciation Schedule worksheet calculate and enter the depreciation and balancing adjustments for the tax year 20XX/XY

additional information

1. Royal Watch Ltd is a manufacturer and exporter of fashion watches and designer decorative clocks. Its activities have not changed during the tax year 20XX/XY.

2. For accounting purpose, the company uses the straight-line method to depreciate assets. For taxation purpose, it chooses to use the diminishing value method to depreciate its assets and chooses the option of self-assessment of the assets effective life to calculate the lives of depreciating assets (Section 40-95 ITAA97). All assets are purchased post 10 May 20XO and the leasehold improvement is in relation to the leased office. The opening adjustable values are:

Asset	Effective Live	Opening adjustable value
Plant and Machinery	10 years	$3,125,052
Leasehold improvement	15 years	$1,635,988
Office Equipment	4 years	$250,635

3. The opening adjustable value of the plant and machinery disposed of during the year was $368,000 and the proceeds of $280,356 from the sale of these assets was received on 1 September 20XX.

4. The company purchased office equipment of $50,890 on 1 November 20XX.

5. The company depreciates the factory premises over 40 years for both accounting and taxation purposes. The construction cost of the factory premises is $2,014,600 and the opening adjustable value is $ 1,611,680

6. Among the entertainment expenses, $38,450 was for food and drinks provided during five whole day in-house seminars attended by clients and employees. The balance was for lunches and dinners with customers.

7. Among the legal fees, the company incurred $68,300 legal fees in defending a lawsuit against its director, John who fought with the plaintiff during a Friday day drink with colleagues in a pub. FBT has not been paid on this legal fee.

8. The payment of annual leave was $35,750 during the year 20XX/20XY.

9. A provision of 5% is made on debts which are overdue for more than 30 days except for one debt which has been overdue for more than 12 months. A full provision has been made for this debt of $230,798. However, the receivables clerk failed to mail a legal claim to the clients correct address.

10. The company agreed to prepay promotion fees to the BBC Event Co for the service period 1 May 20XY to 30 April 20XA. The payment of $220,000, net of 20% discount, was made on 15 April 20XY. This amount has not been recorded in the income statement and balance sheet.

11. Repairs and maintenance expense included the cost for the replacement of carpet in the factory meeting rooms with premier stone floor. This cost of $123,540 was paid on 1 April 20XY.

Royal Watch Ltd Tax Reconciliation For the period 1 July 20XX to 30 June 20XY Plant and Machinery Leasehold Improvements Office Equipment Building Opening Adjustable Value Additions - Costs (Disposals - adjustable value) (Less: Decline in Value) Closing Adjustable Value 0 0 0 0 Sales proceeds - termination value (Disposals - adjustable value) 0 0 0