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Question: On 31 August 2018, Musk Traders purchased a machine on credit for a cost price of R402 500 (including VAT at 15%). Machinery is depreciated over six years according to the straight-line basis and there is no residual value on this machine, as it is highly specialised. Musk Traders has a 30 June year-end.
Required: Calculate the depreciation and accumulated depreciation for 2019 and 2020. Round to the nearest Rand. Show all your workings.
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