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QUESTION 1 Raja operates a healthy yogurt factory in Kuala Lumpur. The yogurt machines in his factory are purchased overseas. On 1 Jan 2017,
QUESTION 1 Raja operates a healthy yogurt factory in Kuala Lumpur. The yogurt machines in his factory are purchased overseas. On 1 Jan 2017, he purchased a machine from Japan costing $360,000. The machine was delivered to Malaysia on freight. The transportation cost of $9,000 and freight insurance of $3,600 was borne by Raja. When the machine landed in Malaysia, Raja paid custom duty of $9,000. Raja hired an engineer to install the machine within the factory. The engineer told Raja that in the event Raja wishes to dismantle the machine in the future, it would cost him $2,100. After the installation was completed, the engineer billed him at $3,000. Raja plans to use the machine for 6 years. Every year, the machine would be maintained at a cost of $700. In year 7, the machine will be dismantled. The depreciation rate for the machine was 35% using reducing balance method. For every of his assets. Raja adopts the policy to make full-year depreciation in the year of purchase. REQUIRED: a. Find the total cost of the yogurt machine above. b. Find the below amount from year 2017 to year 2022. i. Depreciation. (5 marks) ii. Accumulated depreciation. III. Net book value (NBV). (6 marks) (6 marks) (3 marks) (Total: 20 marks)
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