The following balances appeared in the books of Lisbon Dealers on the 1 March 2020: Land and Buildings

Vehicles

Machinery

Accumulated Depreciation on Vehicles Accumulated Depreciation on Machinery

900 000

200 000 300 000 40 000 ?

Additional information:

A new building was purchased on 1 September 2020 for R1 000 000.

Vehicle A with a cost price of R200 000 was sold on 31 November 2020 on credit to Mr Long

for R140 000. Vehicle A was purchased on 1 March 2019.

A new delivery vehicle (Vehicle B) was purchased for R345 000 on credit from Siya Motors

on 1 December 2020.

All machinery was purchased on the 30 April 2017.

Computer equipment was purchased on the 30 September 2020 for R30 000.

The depreciation policy on noncurrent assets are as follows:

o Vehicles: 20% on cost using the straightline method

o Machinery: All machinery is written off at 10% per annum using the diminishing

balance method

o Equipment: Equipment is written off at 10% per annum using the diminishing balance

method IGNORE VAT.

Required:

Q.1.1

Provide the note to Property, Plant and Equipment for the yearended 28 February 2021.

The total column is not required.

Round to the nearest rand.

Show all workings.