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On January 1, 2017, Beyond Adventures Ltd. purchased a safari jeep for use in their wilderness weekends. The following information is available. Cost Estimated
On January 1, 2017, Beyond Adventures Ltd. purchased a safari jeep for use in their wilderness weekends. The following information is available. Cost Estimated useful life Residual value Mileage in 2017 Required: R30,000 6 years or 80,000 kms. R8,000 15,000kms 1. If the company depreciates based on 50% each in the years of acquisition and disposal, calculate the depreciation for 2018 under each of the methods below. Round yournal answer to nearest whole Rand 2. (a) Usage based (Units of Production) (b) Straight-line (c) Double-declining balance - round percentage to two decimal places, Compare the carrying amount for 2017 under each of these methods 3. Which of the three methods results in the lowest net income for 2017? 4. Which of the three methods results in the lowest net income for 2018 i5,000 kms were driven? [2] [2] 121 [6] [2] [6]
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