1.6 Tim purchased some new computer equipment at the beginning of 2013 with a cost of...
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1.6 Tim purchased some new computer equipment at the beginning of 2013 with a cost of R40 000. The equipment has a residual value of R5 000, and Tim has elected to use the declining balance (reducing balance) method for calculating the depreciation on the equipment. The depreciation rate is 10% per year. Furthermore, at the beginning of 2015 he purchased security equipment with a cost of R80 000, a residual value of R10 000 and a useful life of 14 years. What will the total carrying value of this equipment (computer and security) be at the end of 2016? (Max. 8 lines) (7 marks) Start writing here: I 1.6 Tim purchased some new computer equipment at the beginning of 2013 with a cost of R40 000. The equipment has a residual value of R5 000, and Tim has elected to use the declining balance (reducing balance) method for calculating the depreciation on the equipment. The depreciation rate is 10% per year. Furthermore, at the beginning of 2015 he purchased security equipment with a cost of R80 000, a residual value of R10 000 and a useful life of 14 years. What will the total carrying value of this equipment (computer and security) be at the end of 2016? (Max. 8 lines) (7 marks) Start writing here: I
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To calculate the carrying value of the equipment at the end of 2016 we need to calculate the accumulated depreciation for each asset and subtract it f... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Posted Date:
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