Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

vodafone AU 4G 11:59 AM Ims.uwa.edu.au expenditures on day-to-day repairs and maintenance do not extond or enhance the life of the asset, such expenditures are

image text in transcribed
vodafone AU 4G 11:59 AM Ims.uwa.edu.au expenditures on day-to-day repairs and maintenance do not extond or enhance the life of the asset, such expenditures are expensed in the period in which they are incurred. 1 of 10 ise 144 Depreciation methods No GST Nevertire Lid purchased a delivery van costing 552 000 It is expected to have a residual value of $12 000 at the end of its useful life of 4 years or 200 000 kilometres. Ignore GST Required (a) Assume the van was purchasod on 2 July 2019 and that the accounting period ends on 30 June. Caculate the depreciation expense for the year 2019-20 using cach of the following depecciation methods: ii diminishing balance ili. units of production (assume the van was driven 78 000 kilometres during the financial year (b) Assume the van was purchased on 1 October 2019 and that the accounting period ends on 30 June. Calculate the depecciation expense for the year 2019-20 using cach of the felowing deprociation methods: ii. diminishing balance ili. units of production (assume the van was driven 60 000 kilometres during the financial year) Straight-line: ($$2 000-$12 000)4-$10000 12000 52000 -1-0.6931-0.3069 or 31% $52 000 x 0.31-$16 120 Expense per kilometre (52 000-$12 000)200 000-$02 0.2 x 78 000 S15 600 Straight-line: ($52 000-$12 000)4 9/12-57 500 .Diminishing balance: (352 000 0.31)x 9/12- $1200 si. Units-ofproduction: S0.2 x60000 $12 000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Financial Accounting

Authors: Richard Lewis, David Pendrill

6th Edition

0273638335, 978-0273638339

More Books

Students also viewed these Accounting questions

Question

Discuss the six purposes of performance management. page 340

Answered: 1 week ago