You are given the following:

Land at cost 450 000

Factory buildings at cost 825 000

Machinery at carrying value (1 July 2018) 850 000

Equipment at carrying value (1 July 2018) 600 000

Accumulated depreciation on machinery (1 July 2018) 170 000

Accumulated depreciation on equipment (1 July 2018) 340 000 Additional information: Machinery was purchased and installed at a total cost of R1 020 000 on 31 August 2017. Depreciation on machinery is 20% per annum on the reducing balance method.

The building was occupied on 1 January 2019. Depreciation on buildings is provided for at 2% per annum, according to the straight-line method.

On 30 June 2019, land was revalued to R550 000.

On 30 April 2019, equipment with a cost of R90 000 and accumulated depreciation at 1 July 2018 of R80 000 was traded in for R48 700 on new equipment with a cost price of R150 000. Equipment is depreciated at 25% per annum on the straight-line method. Required: 1. Calculate the depreciation for the year ended 30 June 2019. (8)

2. Prepare an asset disposal account for the equipment that was traded in. (7)