Compute the total capital allowances claimable by Ibu Mertuaku Berhad for the above assets for the year of assessment 2022.
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Question 6
a) Ibu Mertuaku Berhad manufactures paper boxes. The company closes its
accounts annually on 31 May, and in its year ended 31 May 2022, the
company acquired the following assets:
- A lorry was acquired under a hire purchase scheme and the relevant
details are as follows:
- A heavy machine was acquired for RM3,000 and used in the company.
- A reconditioned van was acquired for RM130,000 to transport their
management team. The van was not licensed as a commercial vehicle.
- On 3 October 2022, the company bought a folding machine for
RM120,000.
Required:
a)Compute the total capital allowances claimable by Ibu Mertuaku Berhad for
the above assets for the year of assessment 2022.
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- Q2 – A company purchased equipment on 1st January 2020 which cost £30,000 with a useful life of 3 years. On 31st October 2020, an update to the equipment meant that a revaluation was completed. The expert valued the equipment at £40,000 and recommended that the useful life from revaluation will be 5 years. (i) What is the journal to process the revaluation on 31st October 2020? (ii) What is the journal to process the depreciation to 31st December 2020 (Round to the nearest £)? (iii) What is the Net Book Value of the equipment on 31st December 2020? Please dont give me handwritten answer thankuJ an purchased the following for her manufacturing business in 2022: Machinery August 10, 2022 $47,000 Equipment October 15, 2022 $45,000 Which convention is used for the assets to calculate depreciation expense? a. Machinery Half year, Equipment Half year b. Machinery Half year, Equipment Mid quarter c. Machinery Mid month, Equipment Half year d. Machinery Mid quarter, Equipment Mid quarter Please do not plagizrise from other tutoring sites thankuQuestion 1 Sejati Bhd buys a new machinery for RM10,000 on 1 January 2018. The machinery is estimated to be used for 5 years. After exactly 3 years, however, the machinery is suddenly sold for RM5,000. Sejati Bhd always provide a full year’s depreciation in the year when assets are purchased and no depreciation in the year when assets are disposed. Required: Prepare the accumulated depreciation for machinery accounts and machinery disposal accounts for years 2018, 2019 and 2020: Using the straight-line depreciation method (assume 20% p.a.) Using the reducing balance depreciation method (assume 40% p.a.).
- Question 2 Assume you work for a company as an accountant and you have been asked to calculatethe depreciation expense for each year of a new machine that your company purchasedon April 1, 2021, at a cost of $ 595,000. You have estimated that the machine will havea salvage value of $15,000. The machine is expected to be used for 36,400 workinghours during its 5-year life.1. The following are the selected transactions which were performed by a trading organizationduring 2019. The accounting period of the organization ends on December 31 each year.On May 1, 2019, a machine was sold for Rs. 150,000 which was purchased for Rs. 700,000 onApril 1, 2014 and at the time of purchase the useful life of the machine was estimated to be 6years and estimated salvage value was Rs. 70,000. Sum of the years’ digits method was decidedto be used for calculating depreciation.On July 1, 2019 an old equipment was exchanged with a new equipment. The old equipment waspurchased on Oct. 1, 2015 for cash Rs. 250,000 and at the time of purchase the useful life wasestimated to be 10 years and estimated salvage value was Rs. 50,000 and straight line methodwas decided to be used for calculating depreciation. The cost of new equipmet and trade inallowance were Rs. 400,000 and Rs. 80,000 respectively.Required:Record the abovce transactions in General Journal.Answer ALL questions. - Set financial calculator to zero decimal place. A. On September 22, 2022, Marvel Inc. purchased machinery for $190,000. Residual value was estimated to be $10,000. The machinery will be depreciated over eight years using the sum-of-the-years’-digits method. If depreciation is computed on the basis of the nearest full month, how much depreciation expense for 2023 on this machinery should Marvel record? B. Medard Co. purchased equipment in January of 2013 for $90,000. The equipment was being depreciated on the straight-line method over an estimated useful life of 20 years, with no residual value. At the beginning of 2023, when the equipment had been in use for 10 years, the company paid $15,000 to overhaul the equipment. As a result of this improvement, the company estimated that the useful life of the equipment would be extended an additional 5 years. What should be the depreciation expense recorded for this equipment in 2023? C. In January, 2023, Demba…
- Answer ALL questions. - Set financial calculator to zero decimal place. A. On September 22, 2022, Marvel Inc. purchased machinery for $190,000. Residual value was estimated to be $10,000. The machinery will be depreciated over eight years using the sum-of-the-years’-digits method. If depreciation is computed on the basis of the nearest full month, how much depreciation expense for 2023 on this machinery should Marvel record? B. Medard Co. purchased equipment in January of 2013 for $90,000. The equipment was being depreciated on the straight-line method over an estimated useful life of 20 years, with no residual value. At the beginning of 2023, when the equipment had been in use for 10 years, the company paid $15,000 to overhaul the equipment. As a result of this improvement, the company estimated that the useful life of the equipment would be extended an additional 5 years. What should be the depreciation expense recorded for this equipment in 2023? C. In January, 2023, Demba…Coco Sdn Bhd has a year end of 31 December and operates a factory which makesceramic tiles. It purchased a machine on 1 July 2020 for RM80,000 which had auseful life of ten years and is depreciated on the straight-line basis, time apportionedin the years of acquisition and disposal. The machine was revalued to RM81,000 on1 July 2021. There was no change to its useful life at that date. A fire at the factoryon 1 October 2023 damaged the machine leaving it with a lower operating capacity.The accountant considers that Coco Sdn Bhd will need to recognise an impairmentloss in relation to this damage.The accountant has ascertained the following information at 1 October 2023:i. An equivalent new machine would cost RM90,000.ii. The machine could be sold in its current condition for a gross amountof RM45,000 with a dismantling cost of RM2,000.iii. In its current condition, the machine could be used for three more yearswhich gives it value in use of RM38,685.Required:With respect to MFRS 136,…Choose the letter of the correct answer Pedro Reyes purchased a delivery vehicle on January 1, 2016 amounting to PHP250,000. It is estimated that the vehicle will be useful for 10years. The vehicle can be sold for PHP10,000 at the end of its useful life. If the accounting period being reported by Pedro is one (1) year from January – December 2016, how much is the depreciation expense? a. Php240,000 b. Php24,000 c. Php20,000 d. Php2,000
- 5. Lepat Trading prepared its account on 30 June every year. On 30 June 2019, the statement of financial position of Lepat Trading showed the folowing. Statement of Financial Position as at 30 June 2019 RM RM Non-Current Asset Machinery 100,000 Accumulated depreciation 20,000 80,000 Motor vehicles 160,000 Accumulated depreciation 96,000 64,000 During the year ended 30 June 2020, machinery worth RM20,000 and motor vehicles worth RM60,000 were purchased by cheques. The machinery was depreciated at 10%per annuum using the straight line method and the motor vehicles at 20% per year using the reducing balance method. Required: Show the following for the year 2020: a) Machinery account b) Motor vehicles account c) Accumulated depreciation accounts for machinery and motor vehicles respectively d) Statement of Financial Position (extract) as at 30 June 2020Question 1Sejati Bhd buys a new machinery for RM10,000 on 1 January 2018. The machinery is estimated to be used for 5 years. After exactly 3 years, however, the machinery is suddenly sold for RM5,000. Sejati Bhd always provide a full year’s depreciation in the year when assets are purchased and no depreciation in the year when assets are disposed. Required: Prepare the accumulated depreciation for machinery accounts and machinery disposal accounts for years 2018, 2019 and 2020: a. Using the straight-line depreciation method (assume 20% p.a.) b. Using the reducing balance depreciation method (assume 40% p.a.).Week 1 Tea Tree Bay Ltd acquires a Gizmo Machine from Jetsons Ltd for the following consideration:Cash$20,000LandIn the books of Tea Tree Bay Ltd the land is recordedat its cost of $100,000. It has a fair value of $140,000.Equipment:In the books of Tea Tree Bay Ltd the equipment is recorded at a cost of $50,000. The equipment has an accumulated depreciation balance of $20,000. The fair value of the equipment is $23,000Assumption of liability Tea Tree Bay Ltd also agrees to assume the liability of Jetsons Ltd’s bank loan of $30,000 as part of the Gizmo Machine acquisition.Other associated costs Tea Tree Bay Ltd also spend $5,000 as the installation cost. Testing cost was $2,500. Transportation cost for the machine was $700. During first year of operation, the company paid $650 as the maintenance cost for the machine. Required: a) Calculate the acquisition cost of the Gizmo Machine that will be used as the base for future depreciation charge. b) Provide the journal entries that would…
