The following non-current asset was shown in the balance sheet at 30th June, 2021. The asset was purchased on 1st July 2019. $ Machinery (at cost) 45,000 Less Accumulated Depreciation 22,000 Written down value 23,000 

Required: 

(a) What relationship does the $23,000 balance have to the current selling value of the machinery? 

(b) If the annual depreciation charge is $11,000 and the useful life is expected to be four (4) years, then.

(c) How old is the machinery at this stage? 

(d) What will be the estimated residual value of the machinery at 30.06.22 

(e) What method of depreciation is being adopted? 

(f) What assumption for asset usage is being made by adopting this method of depreciation?

Answer rating: 100% (QA)

a The 23000 balance is the net book value of the machinery This is equal to the cost of the machiner... View the full answer