Required: Calculate the cost of item of Property, plant and equipment from the following questions: 17x1 = 07] marks) (a) The following expenses were incurred when an item of machinery (non-current asset) was purchased Unless otherwise stated, VAT where applicable, is included. The business is not registered for VAT purposes and is not able to claim VAT back. Quoted price (excluding VAT) R80 000 VAT 15% Transport to the business premises R1 900 Staff training cost R2 500 Installation (labour) cost R4 600 (b) An assets was bought and the following charges were incurred: List price R4 000 Trade discount 20% Installation costs R700 Refundable import duties R600 Instruction Show all workings to earn marks Show all workings to earn marks Question 1.2 You were recently appointed as the accountant of Avis Ltd. The precious accountant could not account for the transactions relating to fixed assets. Management has appointed you for a three (3) month trial period, subject to success with regard to fixed assets disclosure. Avis Ltd is a registered Vat vendor and all amounts exclude Vat unless otherwise indicated. The following information appeared in the fixed assets register of Avis Ltd: Expected Cost price Residual value Vehicles useful/methods R 100 000 kilometers 85 000 Tazz ? 15 000 Camry Date acquired R 01/01/2017 30/06/2017 1 Page ACOECP: FINT100 It could not be determined what the cost price of the Camry was. According to the auditors the depreciation for the 2017 financial year amounted to R8 000. The following transaction occurred during the financial year ended 31 December 2019: 1. The Tazz was sold on 30 July 2019. Although it could not be determined what the selling price of vehicle was, management informed you that a profit of R11 000 was realised on the given date. Kilometers travelled 2017 25 000 2018 40 000 2019 15 000 2. A new computer equipment was acquired on 1 January 2019 for R80 500 cash (including 15 %Vat The expected useful life of four (4) years with a nil residual value. On 31 December 2019 the computer was tested for impairment to the Recoverable amounts of R50 000 Depreciation is calculated as follows: Description of Assets Method of depreciation Tazz The units of production method Computer equipment 25% Diminishing balance method Camry Straight-line method Required [3] 1. Calculate the depreciation of Tazz and Camry Vehicles for the financial year 2019 2. Record the above-mentioned transaction in the Assets De-recognition account (general ledger) Avis Ltd for the year ended 31 December 2019. [4] (6 3. Disclose Computer on Property, Plant and equipment note. Additional information All amounts should be rounded off to the nearest rand. Assume that the calculation by the auditors for depreciation of the Camry was correct