FA 1 -MAX CASE STUDY: TOPIC 4(11) DEPRECITION AND DISPOSAL 2. Following some further discussions with...

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FA 1 -MAX CASE STUDY: TOPIC 4(11) DEPRECITION AND DISPOSAL 2. Following some further discussions with Max, it has been decided that the following depreciation methods will be employed a. Electric Car - Units of Use Method based on the information provided above. Usage is 26,000kms in the first year of use and 24,000kms in the following year Testing Unit- Reducing Balance at a rate of 45%. Warehouse - Straight Line Rate based on the information provided above and assuming the fair value of the land accounted for 60% of the cost of the package. b. c. Show the General Journal entries to record the depreciation expense on all assets Max now has control of for the remainder of this year and all of next year. 2. Max Armim Torque - General Journal PARTICULARS DATE P/R DEBIT $ CREDIT $ FA 1 -MAX CASE STUDY: TOPIC 4(11) DEPRECITION AND DISPOSAL 2. Following some further discussions with Max, it has been decided that the following depreciation methods will be employed a. Electric Car - Units of Use Method based on the information provided above. Usage is 26,000kms in the first year of use and 24,000kms in the following year Testing Unit- Reducing Balance at a rate of 45%. Warehouse - Straight Line Rate based on the information provided above and assuming the fair value of the land accounted for 60% of the cost of the package. b. c. Show the General Journal entries to record the depreciation expense on all assets Max now has control of for the remainder of this year and all of next year. 2. Max Armim Torque - General Journal PARTICULARS DATE P/R DEBIT $ CREDIT $

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