QUESTION $3$ PROVISIONS, CONTINGENT LIABILITIES AND ASSETS

$15$ MARKS

Tech Ltd acquired a plant for R$1000000$ on $1$ January $2021.$ The plant will be measured under the cost model, with depreciation on the straight$-$line method to a nil residual value. Tech Ltd has a legal obligation to dismantle the plant at the end of its four$-$year useful life. The estimated future cost of dismantling is R$40000,$ while the present value of dismantling costs is R$27321$ using a discount rate of $10\%.$

REQUIRED

$\backslash$table$[[2\mathrm{.}1,$Compute the effective interest rate table and show journals for the year ended $31]]$ December $2021$ and $2022$ assuming:

$1$ The dismantling cost decreased to R$30000$ on $1$ January $2022.($Ignore tax$)$