Gareth, a sales tax registered trader purchased a computer for use in his business. The invoice for the computer showed the following costs related to the purchase: Computer Additional memory Delivery Installation $ 890 95 10 20 Maintenance (one year) 25 1,040 182 Sales tax (17.5%) Total 1,222 How much should Gareth capitalise as a non-current asset in relation to the purchase?
Gareth, a sales tax registered trader purchased a computer for use in his business. The invoice for the computer showed the following costs related to the purchase: Computer Additional memory Delivery Installation $ 890 95 10 20 Maintenance (one year) 25 1,040 182 Sales tax (17.5%) Total 1,222 How much should Gareth capitalise as a non-current asset in relation to the purchase?
Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization
Section: Chapter Questions
Problem 61P
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Question
Transcribed Image Text:Gareth, a sales tax registered trader purchased a computer for use in his business. The invoice for the
computer showed the following costs related to the purchase:
$
890
Computer
Additional memory
Delivery
Installation
95
10
20
Maintenance (one year)
25
1,040
182
Sales tax (17.5%)
Total
1,222
How much should Gareth capitalise as a non-current asset in relation to the purchase?
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