FAC1502 ASSIGNMENT 2
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, FAC1502 ASSIGNMENT 2
UNIQUE NUMBER 765738
QUESTION 1
To calculate profit upon a disposal of a PPE asset one has to calculate accumulated depreciation.
Selling price - Accumulated depreciation = loss(-)cr \profit (+) dr
One needs to construct a timeline for the disposal.
Cost of the vehicle 21600
Total accumulated depreciation (the years involved) (14040)
1 july 2013-june 2014= 6\12 × 20%×21600= 2160
1 july 2014-30 june 2015 20%×21600= 4320
1 july 2015-30 june 2016 20%×21600= 4320
1 july 2016-31 march 2017 9\12×20%×21600= 3240
Carrying amount(add all the
depreciations) 7560
Profit = selling price -book value
Selling Price 5000
Book value 7560
loss on the sale of an asset -2560
OPTION 5
QUESTION2
WHENEVER THERE IS A MOVEMENT OF ASSETS DURING THE YEAR DEPRECIATION HAS TO BE CALCULATED
SEPERATELY FOR EACH ASSET.
Total depreciation 17433
Total depreciation for machinery(old)57600×25%= 14400
depreciation of the new 72800×2\12×25%= 3033
OPTION 2
This study source was downloaded by 100000828791684 from CourseHero.com on 08-26-2021 16:30:43 GMT -05:00
https://www.coursehero.com/file/32833340/FAC1502-ASSIGNMENT-2-anoe-1pdf/
This study source was downloaded by 100000828791684 from CourseHero.com on 08-26-2021 16:30:43 GMT -05:00
https://www.coursehero.com/file/32833340/FAC1502-ASSIGNMENT-2-anoe-1pdf/
, FAC1502 ASSIGNMENT 2
UNIQUE NUMBER 765738
QUESTION 1
To calculate profit upon a disposal of a PPE asset one has to calculate accumulated depreciation.
Selling price - Accumulated depreciation = loss(-)cr \profit (+) dr
One needs to construct a timeline for the disposal.
Cost of the vehicle 21600
Total accumulated depreciation (the years involved) (14040)
1 july 2013-june 2014= 6\12 × 20%×21600= 2160
1 july 2014-30 june 2015 20%×21600= 4320
1 july 2015-30 june 2016 20%×21600= 4320
1 july 2016-31 march 2017 9\12×20%×21600= 3240
Carrying amount(add all the
depreciations) 7560
Profit = selling price -book value
Selling Price 5000
Book value 7560
loss on the sale of an asset -2560
OPTION 5
QUESTION2
WHENEVER THERE IS A MOVEMENT OF ASSETS DURING THE YEAR DEPRECIATION HAS TO BE CALCULATED
SEPERATELY FOR EACH ASSET.
Total depreciation 17433
Total depreciation for machinery(old)57600×25%= 14400
depreciation of the new 72800×2\12×25%= 3033
OPTION 2
This study source was downloaded by 100000828791684 from CourseHero.com on 08-26-2021 16:30:43 GMT -05:00
https://www.coursehero.com/file/32833340/FAC1502-ASSIGNMENT-2-anoe-1pdf/