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: a. Using the straight-line depreciation method (assume 20% p.a.) b. Using the reducing balance depreciation method (assume 40% p.a.).
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: a. Using the straight-line depreciation method (assume 20% p.a.) b. Using the reducing balance depreciation method (assume 40% p.a.).
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter1: Accounting And The Financial Statements
Section: Chapter Questions
Problem 40E: Exercise 1-40 Depreciation OBJECTIVE 0° Swanson Products was organized as a new business on January...
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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
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.).
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