Question 4: The following details regarding Machines are provided: Machine

Date of purchase Cost Date of sale Cash Proceeds

X 05/04/2017 $1,000,000 02/06/2020 $450,000

Y 01/01/2019 $2,000,000

The policy of the company is to depreciate its PP&E at 10% on cost. Depreciation is charged in full in the year of purchase with no depreciation charged during the year of disposal.

Required: For year ended 31st December 2020

prepare: Machinery account

Accumulated depreciation account

Machinery disposal a/c

SPOL Extract

SFP Extract