Southeast Limited is a national company that manufactures fans in a rented factory in Gunners Circle, Cape Town with retail outlets that sells its products in areas where it is hot and not much wind. These outlets are far from Cape Town and not very accessible by road. Therefore, it has a light aircraft, a Cessna propeller plane, to fly its directors to the outlets for sales meetings. You are provided with the following schedule of property, plant and equipment at the end of the previous financial year, $31$ December $2012$ and need to assist the accountant with the depreciation calculations for the current financial year ended $31$ December $2013$:

Property, plant & equipment Date of Initial cost Residual value Useful

purchase Rand Rand life

Light aircraft $1$ January $201040000010000015000$ km

Machinery $30$ June $2011150000100005$ years

Vehicles $1$ April $20128000050004$ years

Additional information:

$1)$ The aircraft flies $3000$ kilometers each year.

$2)$ While cleaning the aircraft, cracks were found in the propellers that could not be repaired and both propellers were replaced at a total cost of R$120000.$ The aircraft could not be used without the propellers as it was an essential component of the aircraft. The propellers were purchased on credit on $1$ January $2013$ from Props For Africa Limited.

$3)$ On $1$ March $2013,$ machinery with a cost of R$50000$ was purchased from a company in China, TallBuild Limited, on credit. Import duties of R$2000$ was paid as well as non$-$recoverable taxes of R$500.$ Air freight was paid totaling R$1500.$ The machine needed to be installed and therefore a technician was hired to install the machinery, he was paid R$800.$ The technician then suggested that the manager goes green by purchasing an extension pipe in order for all fumes coming from the machine to be evaporated and not let out into the environment. The manager agreed and purchased these pipes costing R$200.$ The technician installed these pipes at a cost of R$100.$ The machinery was ready for use on $1$ April $2013$ and has a residual value of R$5000.$

$4)$ The company uses the straight line method of depreciation for machinery, the diminishing balance method for vehicles and the units of production method for the aircraft.

You are required to:

a$)$ Calculate the depreciation expense for the aircraft, machinery and vehicles for the year ended $31$ December $2013.(17$ Marks$)$

b$)$ Calculate the carrying value of the aircraft at $31$ December $2013.(3$ Marks$)$