Peter purchased a tractor for R350 000 on 1 September 2019. He estimated the residual value at R120 000 and depreciate it at 15% per year using the diminishing balance method how do I calculate the book value of the tractor at 31 March 2022

Peter purchased a tractor for R350 000 on 1 September 2019. He estimated the residual value at R120 000 and depreciate it at 15% per year using the diminishing balance method how do I calculate the book value of the tractor at 31 March 2022

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter14: Property Transact Ions: Capital Gains And Losses, § 1231, And Recapture Provisions

Section: Chapter Questions

Problem 33CE

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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

Peter purchased a tractor for R350 000 on 1 September 2019. He estimated the residual value at
R120 000 and depreciate it at 15% per year using the diminishing balance method how do I calculate the book value of the tractor at 31 March 2022

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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