Angela purchased a machine for her business on 1 March 20X1 for $12,000. She incurred additional costs for transportation of $1,300 and installation of $2,000. Shortly after she started to use the machine, it broke down and the repairs of the machine cost $600. Angela charges depreciation at 10% per annum on straight line basis with a full year’s charge in the year of acquisition.

Required:

Calculate the correct net book value of the machine at the year-end date of 31 December 20X1

Answer rating: 100% (QA)

To calculate the correct net book value of the machine at the yearend date of December 31 20X1 ... View the full answer