Solution-Calculate depreciation expense that A-R Limited

Calculate depreciation expense that A-R Limited will claim

Assignment Help Accounting Basics

Reference no: EM133063308

Question - A&R Limited purchased a sorting machine for $150,000 on 1 January 2016. Freight cost for the sorting machine was $1,500 and installation cost were $2,000. All prices are GST exclusive. The policy of the company is to depreciate machinery at a rate of 20% annually using the diminishing value method.

Part 1: Cost - Determine and calculate the cost of the Sorting Machine that A&R Limited is going to depreciate.

Part 2: Depreciation Calculation 2016 - Calculate the depreciation expense that A&R Limited will be able to claim for the 2016 income years for the Sorting Machine. SHOW ALL WORKINGS.

Prepare the journal entries to record the depreciation expense for 30 June 20X6.

Part 3: Depreciation Calculation 2017 - Calculate the depreciation expense that A&R Limited will be able to claim for 2017 income year for the Sorting Machine. SHOW ALL WORKINGS.

Prepare the journal entries to record the depreciation expense for 30 June 2017.

Reference no: EM133063308

Questions Cloud

Preliminary efforts used to criminalize welfare : What the some of the preliminary efforts used to criminalize welfare "fraud?"

Construct a personal development plan : Construct a personal development plan to include continuing professional development, for a manager working in your organisation.

What does the tanak say about life after death : 1. What is God's name in Hebrew and what names do the Jews use to call him?

Determine the economic life of the machine : A machine costs $ 10,000 and is expected to be scrapped for $ 1,500 in the moment he retires. Operating expenses for the first year are expected to be $ 3,500 a

Calculate depreciation expense that A-R Limited will claim : Calculate the depreciation expense that A&R Limited will be able to claim for 2017 income year for the Sorting Machine

Advantages and disadvantage of buying home : Explain some of the advantages and disadvantage is of buying a home compared to renting what are some of the key issues a first time home buyer should consider

Explain the expansionary fiscal-monetary policy : a) Explain whether a contractionary or an expansionary fiscal or monetary policy should be implemented in 2021.

Discuss the impact of the good harvest : (i) Discuss the impact of the good harvest on each of the three markets.

Determine March Operating income for Philadelphia Company : Philadelphia Company has the following information for March: Sales $463,289. Determine March Operating income for Philadelphia Company

User Account

All Pages

Calculate depreciation expense that A-R Limited will claim

Reference no: EM133063308

Reference no: EM133063308

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT