Q.3.9 The financial director has asked you to calculate and compare the accumulated depreciation and carrying...
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Q.3.9 The financial director has asked you to calculate and compare the accumulated depreciation and carrying values for an asset over 3 years (up to 31 December 2022) making use of both the straight-line and diminishing balances methods. Cost of the new asset: R300 000 (excluding VAT) Residual value of the asset: R50 000 Depreciation rate: 25% Date purchased: 1 September 2020 Financial year-end: 31 December Set your answer out in two tables with headings as provided below; and round to the nearest rand: Straight-line method: Year . . Cost of asset Depreciation Accumulated (minus depreciation residual value) Diminishing (reducing) balances method: For the diminishing balances method ignore the residual value Cost of asset Depreciation Accumulated depreciation Year R300 000 Book value Book value Q.3.9 The financial director has asked you to calculate and compare the accumulated depreciation and carrying values for an asset over 3 years (up to 31 December 2022) making use of both the straight-line and diminishing balances methods. Cost of the new asset: R300 000 (excluding VAT) Residual value of the asset: R50 000 Depreciation rate: 25% Date purchased: 1 September 2020 Financial year-end: 31 December Set your answer out in two tables with headings as provided below; and round to the nearest rand: Straight-line method: Year . . Cost of asset Depreciation Accumulated (minus depreciation residual value) Diminishing (reducing) balances method: For the diminishing balances method ignore the residual value Cost of asset Depreciation Accumulated depreciation Year R300 000 Book value Book value
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Related Book For
Financial Accounting and Reporting a Global Perspective
ISBN: 978-1408076866
4th edition
Authors: Michel Lebas, Herve Stolowy, Yuan Ding
Posted Date:
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