Watcher (Pty) Ltd, a company that sells automobile parts, had the following transactions in relation to...

  

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Watcher (Pty) Ltd, a company that sells automobile parts, had the following transactions in relation to its assets: Required: 2.1 On 1 February 2020, the company bought two machines for R70 000 each. On 31 July 2020, the company purchased a delivery van costing R180 000. On 1 April 2022, the company sold one of the machines for R45 000. Watcher (Pty) Ltd depreciates its machinery at 20% per annum using the reducing balance method, and delivery van at 25% using the straight-line method. The company's financial year-end is 30 June. 2.2 Show calculations for the depreciation amounts of the delivery van and machinery for the years 2020, 2021 and 2022. Did Watcher (Pty) Ltd make a profit or a loss on selling one of the machines, and how much profit/loss did the company make on the sale? Show calculations. Watcher (Pty) Ltd, a company that sells automobile parts, had the following transactions in relation to its assets: Required: 2.1 On 1 February 2020, the company bought two machines for R70 000 each. On 31 July 2020, the company purchased a delivery van costing R180 000. On 1 April 2022, the company sold one of the machines for R45 000. Watcher (Pty) Ltd depreciates its machinery at 20% per annum using the reducing balance method, and delivery van at 25% using the straight-line method. The company's financial year-end is 30 June. 2.2 Show calculations for the depreciation amounts of the delivery van and machinery for the years 2020, 2021 and 2022. Did Watcher (Pty) Ltd make a profit or a loss on selling one of the machines, and how much profit/loss did the company make on the sale? Show calculations.

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ANSWER 21 Depreciation calculations For the machinery Year 1 2020 Depreciation 20 x R70 000 x 512 R5 ... View the full answer