MS sports manufacturing (Pvt) Ltd has purchase a machine during the year May 2023. Following is...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
MS sports manufacturing (Pvt) Ltd has purchase a machine during the year May 2023. Following is the transaction related to the machine occurred. 1. List price Rs. 1,500,000 2. Sales tax 18% 3. Custom duty Rs. 150,000 4. Freight charges Rs. 25,000 5. Installation and foundation charges Rs. 23,000 6. Insurance in transit Rs. 12,000 During the installation, repair work is required costing Rs. 15,000 and the management planned to take insurance coverage for fire cost Rs. 10,000 The company has policy of charging depreciation by using full year policy and reducing balance method @ 15%. Reporting date is 31¹ Dec. Required: 1. Compute the depreciation for last three years (2023. 2024 & 2025) 2. Record the depreciation expense for three years 3. Balance sheet extracts for three years MS sports manufacturing (Pvt) Ltd has purchase a machine during the year May 2023. Following is the transaction related to the machine occurred. 1. List price Rs. 1,500,000 2. Sales tax 18% 3. Custom duty Rs. 150,000 4. Freight charges Rs. 25,000 5. Installation and foundation charges Rs. 23,000 6. Insurance in transit Rs. 12,000 During the installation, repair work is required costing Rs. 15,000 and the management planned to take insurance coverage for fire cost Rs. 10,000 The company has policy of charging depreciation by using full year policy and reducing balance method @ 15%. Reporting date is 31¹ Dec. Required: 1. Compute the depreciation for last three years (2023. 2024 & 2025) 2. Record the depreciation expense for three years 3. Balance sheet extracts for three years
Expert Answer:
Answer rating: 100% (QA)
Ans To compute the depreciation for the machine over the last three years 2023 2024 and 2025 well use the reducing balance method at a rate of 15 Lets ... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these accounting questions
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
-
Assume that you are purchasing shares in a company in the variety store and gas bar supply business. Suppose you have narrowed the choice to BFI Trading Ltd. and Lin Corp. and have assembled the...
-
U-235 releases an average of 2.5 neutrons per fission, while Pu-239 releases an average of 2.7 neutrons per fission. Which of these elements might you therefore expect to have the smaller critical...
-
Describe the three primary functions of managers within organizations that are necessary for long-term sustainability.
-
Give the general classification of rotary pumps.
-
Toyland Corporation, an S corporation, uses the calendar year as its tax year. Bob, Alice, and Carter own 60, 30, and 10 shares, respectively, of the Toyland stock. Carters basis for his stock is...
-
A ball of mass 3.2 kg and speed 1.0 m/s collides head-on with a 2.5 kg ball at rest. If the collision is perfectly elastic, calculate the velocities of the two balls after the collision.
-
John Parsons (123-45-6781) and George Smith (123-45-6782) are 70% and 30% owners, respectively, of Premium, Inc. (11-1111111), a candy company located at 1005 16th Street, Cut and Shoot, TX 77303....
-
Make a conclusion of this case study System Insights System Insights is a new feature available in Windows Server 2019 that brings local predictive analytics capabilities natively to Windows Server....
-
If debts to equity ratio equal to 1 0 0 % so debts to assets ratio equal ?
-
An urn has 1 7 balls that are identical except that 5 are white, 6 are red, and 6 are blue. What is the probability that all are white if 3 are selected randomly without replacement?
-
Consider the following game where there are two players. Player 1 first chooses UP or DOWN. The move of player 1 is not observable by player 2. Player I's move is followed by a chance move that...
-
1. Interpret the phylogenetic tree shown below to answer the following questions. Each letter on the cladogram represents an Operational Taxonomic Unit (OTU). a. Draw a star on the node (branch...
-
For a standardized psychology examination intended for psychology majors, the historical data show that scores have a mean of 5 1 5 and a standard deviation of 1 7 5 . The grading process of this...
-
On January 1, 1998, Umbrella Corporation sold inventory costing $30,000 to Burns Industries. In return, Umbrella Corporation received a 4-year, 9% note with a face value of $100,000. Blended payments...
-
Find the inverse, if it exists, for the matrix. -1
-
Harold Conners (Social Security number 785-23-9873) lives at 13234 DeMilo Drive, Houston, TX 77052, and is self-employed for 2012. He estimates his required annual estimated tax payment for 2012 to...
-
Carl Conch and Mary Duval are married and file a joint return. They live at 1234 Mallory Sq. Apt. 64, Key West, FL 33040. Carl works for the Key Lime Pie Company and Mary is a homemaker after losing...
-
Please answer the following questions regarding the taxability of Social Security: a. A 68-year-old taxpayer has $20,000 in Social Security income and $100,000 in tax-free municipal bond income. Does...
-
Isothermal compression efficiency can be achieved by running the compressor: (a) At a very high speed (b) At a very slow speed (c) At an average speed (d) At zero speed
-
Derive the expression of work done by the compressor in isothermal compression, adiabatic compression, and polytropic compression.
-
Maximum work is done in compressing air when the compression is: (a) Isothermal compression (b) Adiabatic compression (c) Polytropic compression (d) None of these
Study smarter with the SolutionInn App