QUESTION 2 [18 Marks] An Engineering Company that does refrigerated cargo trucks has purchased a new...
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QUESTION 2 [18 Marks] An Engineering Company that does refrigerated cargo trucks has purchased a new assembling plant whose first cost is R200 000 with an estimated life of seven years. The estimated salvage value of the equipment at the end of its lifetime is R50 000. 2.1 Determine the depreciation charge and book value at the end of various years using the straight-line method of depreciation. [6] 2.2 Show the calculations for depreciation and book value on a yearly basis for declining balance method by assuming 0.4 for K. [4] 2.3 Find the depreciation and book value for the 3rd year using the sum of the year digits method of depreciation. [4] 2.4 Compute Ds and B6 using the sinking fund method of depreciation with an interest rate of 10% compounded annually. [4] Foj jetscreenshot QUESTION 2 [18 Marks] An Engineering Company that does refrigerated cargo trucks has purchased a new assembling plant whose first cost is R200 000 with an estimated life of seven years. The estimated salvage value of the equipment at the end of its lifetime is R50 000. 2.1 Determine the depreciation charge and book value at the end of various years using the straight-line method of depreciation. [6] 2.2 Show the calculations for depreciation and book value on a yearly basis for declining balance method by assuming 0.4 for K. [4] 2.3 Find the depreciation and book value for the 3rd year using the sum of the year digits method of depreciation. [4] 2.4 Compute Ds and B6 using the sinking fund method of depreciation with an interest rate of 10% compounded annually. [4] Foj jetscreenshot
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