Answered step by step
Verified Expert Solution
Question
1 Approved Answer
QUESTION 5 6 points Save A Stacey Ltd purchased a new machine on 1 September 2019 at a cost of $227,800 (excluding GST). The entity
QUESTION 5 6 points Save A Stacey Ltd purchased a new machine on 1 September 2019 at a cost of $227,800 (excluding GST). The entity estimated that the machine has a residual value of $30,400 (excluding GST). The machine is expected to be used for 42,000 working hours during its 10 year life. Assume a 31 December year-end. Required (a) Calculate the depreciation expense using the straight-line method for 2019 and 2020. (b) Calculate the depreciation expense using the diminishing-balance method and a depreciation rate of 25% for 2019 and 2020. (c) Calculate the depreciation expense using the units-of-production method for 2019, assuming the machine usage was 1,820 hours. (d) On 31 December 2020 the company discarded a delivery truck that was purchased on 1 January 2016 for $22,990 cash (including GST of 10%) and was depreciated on a straight line basis with a useful life of 6 years and a residual value of $2090 (excluding GST). What was the profit or loss on the scranning of the truck
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started