Q.2. [Question Paper] Question 2: Property, Plant & Equipment 20% = (5% +4% +11%) - it contains 2 pages Part a) 5% At the end of the year ending 31 December 2018, XYZ Co. Ltd.'s records reflected the following for an office appliance, namely, a multi-function photocopier ("MFP"): Original cost when acquired $30,000 Accumulated depreciation $10,200 At the beginning of January of 2019, the MFP was renovated at a cost of $15,500 by cash. The renovated cost increased the number of network users from 30 to 50 people. As a result, the estimated economic useful life increased from 5 years to 8 years, and the residual value increased from $4,500 to $6,500. XYZ Co. Ltd. uses straight-line depreciation. Required: Give the journal entries to record the renovation, narrative is not required Account ledger Amount $ Indicate "Dr" for debit and "Cr" for credit iii. vi. i. iv. v. Part b) 4% Based on the facts and your answers from Part a) above, how old was the MFP at the end of 31 December 2018? (Show all your workings, your answer is expressed in number of years) Annual depreciation amount $ Workings i. ii. Number of years old Workings iv. Part c) 11% Based on the facts and your answers from Part a) and b) above, give the adjusting entries at the end of 31 December 2019 to record the straight-line depreciation for the year (narrative is not required). Computations for change in estimates: Description (Guidelines / Hints as given below) $ Less: i. ii. iii. iv. Add: New Depreciable Amount or New Net Book Value v. 1 Page Annual depreciation charge after addition of renovation costs: $ Workings vi. vii. Year-end adjusting journal entries to record the straight-line depreciation for 31 December 2019: Account ledger Amount $ Indicate "Dr" for debit and "Cr" for credit X. xiii. viii. xi. ix. xii