On 20th May 20X4 the entity purchased a production machine for 40 000. The entity got an invoice for transport of the machine stating a payable amount of 4 000. The calculated cost of the machine assembly was 2 000. On 1st of June 20X4 the machine was taken into active use.

Calculate depreciation:

Points 3, 4, 5 only

Exercise 1 On 20th May 20x4 the entity purchased a production machine for 40 000. The entity got an invoice for transport of the machine stating a payable amount of 4 000. The calculated cost of the machine assembly was 2 000. On 1st of June 20x4 the machine was taken into active use. Required: Calculate depreciation: + The straight line method. Residual value of the machine is 0. The straight line depreciation Tate. 20%. Calculate the net value the batence street values as at 31 December 20x7. 2 The straight line method. Residual value of the machine is 10.000. Usefullife 10 years Coleulate the net value the batonice street value as at 31 December 20X6. 3. The entity applies the accelerated depreciation method. The straight line depreciation rate: 20%. Accelerating factor - 2. Residual value of the machine is 0. 4. The entity applies the accelerated depreciation method - the sum of numbers method. Residual value of machine is 0. Useful life - 6 years. 5. The entity applies the accelerated depreciation method (turn back to the straight line method when the annual depreciation amount is lower than the amount calculated with the straight line method). The straight line depreciation rate: 20%. Accelerating factor - 2. Residual value of the machine is 0