Q1&2

1) A company has the following asset account balances: Buildings and equipment $9 200 000 Accumulated depreciation 1 000 000 Patents 750 000 Land improvements 1 000 000 Land 5 000 000 The total amount reported on the statement of financial position under Property, Plant & Equipment would be: a) $14 200 000. b) $13 000 000. c) $12 800 000. d) $13 550 000. ABC 2) Troy Ltd purchased a new machine on 1 October 2016 at a cost of $114,000. The entity estimated that the machine has a residual value of $18,000. The machine is expected to be used for 20,000 working hours during its 5-year life. Calculate the depreciation expense under the straight-line method for 2016 and 2017, assuming a 31 December year-end. 2016 $ 2017 $! EL