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The following information was extracted from the accounting records of Kumkani Traders: Balances at 1 November 20.9 Equipment: Cost...... Accumulated depreciation: Equipment. R 280 000
The following information was extracted from the accounting records of Kumkani Traders: Balances at 1 November 20.9 Equipment: Cost...... Accumulated depreciation: Equipment. R 280 000 (164 800) Additional information (a) At the beginning of the financial year, 1 November 20.9, Kumkani Traders decided to upgrade some of its processes by selling old printing equipment for R31 000 cash. The machine was bought on 31 October 20.4 for R180 000. Depreciated was provided for at 15% per annum on the straight-line method. (b) On 1 December 20.9 Kumkani Traders bought 3D printing equipment for R145 600 on credit from Fourth Dimension. Depreciation on the new machine must be provided for at 25% per annum on the diminishing balance method. Use the information as extracted from the accounting records of Kumkani Traders and assume the accumulated depreciation on the sold equipment was R140 000 at the date of sale and that the total depreciation for the year was R38 367. Which onf of the following alternatives represent the correct amount that must be disclosed as the total carrying amount of equipment at the end of the financial year, 31 October 20.10. A. Total carrying amount at end of the financial year will be R262 433. B. Total carrying amount at end of the financial year will be R182 433. C. Total carrying amount at end of the financial year will be R245 600. D. Total carrying amount at end of the financial year will be R63 167. E. Total carrying amount at end of the financial year will be R260 800
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