Reference no: EM132532829

Dale Cooper began business on 1 January 20X1, with a 31 December balance date. All figures are GST-exclusive. On that day he purchased a new factory machine for making dog food for $48,000 from Wind River Ltd. Freight of $600 and installation expenses of $400 were paid to get the machine into Dale's factory and ready for use.

Dale had to employ a repairman to get the machine operating correctly, as it was found to have been dropped accidentally by one of his employees on delivery, and needed a few things fixing and replaced as a result. The repairs and parts replaced cost $1,000.

The machinery has an estimated life of 25,000 hours.

The hours the machinery is estimated to be used annually are:

Year 1 2,000 hours

Year 2 3,000 hours

Year 3 4,000 hours

Year 4 5,000 hours

Year 5 4,500 hours

• Dale also had a Nissan Maxima turbo vehicle, which he decided to register as a business vehicle, at a cost of $35,000 on 1 January 20X1.

Question a) Show the appearance of the Fixed assets section of the Balance Sheet as at 31 December 20X5, assuming:

1. actual usage equals estimated usage for the machine
2. units of use method is used
3. the vehicle is depreciated at 20% diminishing value.

Round all amounts to the nearest whole dollar. Include any relevant subtotals.