Question
On December 31, 2017, Jim Jones purchased a Machine on credit for $330,000 ($300,000 + $30,000 GST). It had an expected useful life of four
On December 31, 2017, Jim Jones purchased a Machine on credit for $330,000 ($300,000 + $30,000 GST). It had an expected useful life of four years and an expected residual of $22,000 ($20,000 + $2,000GST)
Jim Jones has decided to use the Reducing Balance Method to depreciate the Machine. For all further calculations use the Reducing Balance Method.
Complete the depreciation worksheet for the financial years ended June 30, 2018, 2019, 2020, to 28/2/2021 using the Reducing Balance Method. The asset was sold on the 28/2/2021 for $88,000 ($80,000 + $8,000 GST). The rate of depreciation is 30% p.a.
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