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urgently detailed solution required Question 3- (10) Singer Company purchased a machine on April 01, 2019 at a list price of Rs 1,000,000 with a
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Question 3- (10) Singer Company purchased a machine on April 01, 2019 at a list price of Rs 1,000,000 with a trade discount at 10%. The credit terms were 2/10, 1/20/30. The payment was made on 19 April. The company incurred the following additional expenditures. 1- 5% Sales tax on the cash price of Machine 2- Custom Duty 5% of cash price 3- Installation & Testing cost R$ 300,000 4. The machine was insured against theft and fire and premium paid Rs 50,000 5- Insurance in transit R$ 100,000 6- Freight in Rs 50,000 7- Some parts damaged during installation and got repaired for Rs.25,000. 8- Excise, duties and taxes of R$ 69,900 were paid. Required: a. Compute the final cost of the Machine (4) b. Calculate the Depreciation for 3 years using 1. Straight Line Method, assuming useful life of 10 years and scrap value of Rs 10% of cost.{3) II. Diminishing Balance Method, depreciation rate is 25% per annum (3)Step by Step Solution
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