Scout Ltd. (Scout) is a manufacturer of childrens educational toys and books with a 31 July-financial yearend.

The entity is located in the Eastern Cape from where their operations is conducted.

Scout is currently preparing their financial records for the 2021-financial year.

The following additional information relates to the 2021-financial year:

1. On 1 January 2017, Scout acquired the land from a European entity for 196 800. At the date of the acquisition, the Euro: ZAR exchange rate was 1EUR: 13.95 ZAR.

On 30 January 2020, the land was revalued and according to the independent valuation report issues, the value of the land was R3 000 000.

2. Scouts building was acquired on the same day as the land. The building was however owned by a South African entity from which Scout purchased it for R2 050 000. On the acquisition date, Scout estimated that they will be utilizing the building as is for the next 20 years. On 1 September 2020, Scout however started with construction of an additional wing to the building. On 1 December 2020 the addition was ready for use as intended by management.

The following is a report of the costs incurred during construction:

Cost item	Date	Amount
Construction cost	1 September 2020 to 30 October 2020	R881 000
Refining activities inside building	Nov-20	R67 600
Gardening activities	10-Dec-20	R5 400
Total		R954 000

Scouts intention is to use the building until the end of its useful life for a long

as the entity is in business. Any sales value at the end of the buildings useful life may therefore be omitted.

3. Scouts machinery consists of 3 machines: Machine 55FG , Machine 119 and Machine DFG.

Machine 55FG was purchased for R773 000 on FOB destination point terms.

On 28 February 2019 Machine 55FG left the suppliers premise and on 1 April 2019 arrived at Scouts premise. Scout estimated that they would utilise Machine 55FG for 5 years before selling it for R22 000.

On 30 November 2019, Scout however made improvements of R37 000 to Machine 55FG. The improvements will add R4 100 to the selling value of the machine.

Machine 119 was acquired for R585 000 on FOB selling point terms. Machine 119 left the suppliers premise on 1 February 2019 and arrived at Scouts premise on 1 March 2019.

Machine 119 was also estimated to be used for 5 years before selling for R14 300.

Machine 119 was however sold on FOB destination point terms for R497 700. Machine 119 was left Scouts premise on 1 May 2021 and arrived at its new owner on 1 June 2021.

• Machine DFG was purchased as a replacement for Machine 119 for R592 000 on FOB selling point terms. Machine DFG left the suppliers premise on 1 April 2021 and arrived at Scout on 30 April 2021.

Similar to the other machines, Machine DFG will also be used for 5 years before selling for R13 400.

4. The following is an extract of Scouts property, plant and equipment policy:

Asset	Model of measurement	Depreciation method	Useful life
Land	Revaluation model
Building	Cost model	Straight line method	20 Years
Machinery	Cost model	Diminishing bal-ance method	5 Years

Calculate the depreciation of each class of property, plant and equipment for

Scout Ltd. for the year ending 31 July 2021.