Question
In: Accounting
Note: Require plagiarism free answer A. Alex purchased a CNC machine on 1st October 2019 at...
Note: Require plagiarism free answer
A. Alex purchased a CNC machine on 1st October 2019 at a cost of
$110,000 (including GST). This
machinery is estimated to have a useful life of seven years.
B. Alex purchased a Holden car on 1 May, 2019 at a cost of $63,000,
estimated to have a useful
life of five years.
Required:
With reference to relevant legislation and case law, discuss and
calculate what amount is allowed as
a deduction for the decline in value of the machinery and the
Holden car discussed above, using both
prime cost and diminishing value methods.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
A. Alex purchased a CNC machine on 1st October 2019 at a cost of $110,000 (including...
A. Alex purchased a CNC machine on 1st October 2019 at a cost of
$110,000 (including GST). This machinery is estimated to have a
useful life of seven years.
B. Alex purchased a Holden car on 1 May, 2019 at a cost of
$63,000, estimated to have a useful life of five years.
Required: With reference to relevant legislation and case law,
discuss and calculate what amount is allowed as a deduction for the
decline in value of the machinery...
A. Alex purchased a CNC machine on 1st October 2019 at a cost of $110,000 (including...
A. Alex purchased a CNC machine on 1st October 2019 at a cost of
$110,000 (including GST). This machinery is estimated to have a
useful life of seven years.
B. Alex purchased a Holden car on 1 May, 2019 at a cost of
$63,000, estimated to have a useful life of five years.
Required: With reference to relevant legislation and case law,
discuss and calculate what amount is allowed as a deduction for the
decline in value of the machinery...
Question A. Alex purchased a CNC machine on 1st October 2019 at a cost of $110,000...
Question
A. Alex purchased a CNC machine on 1st October 2019 at a cost of
$110,000 (including GST). This machinery is estimated to have a
useful life of seven years.
B. Alex purchased a Holden car on 1 May, 2019 at a cost of
$63,000, estimated to have a useful life of five years.
Required: With reference to relevant
legislation and case law, discuss and calculate what amount is
allowed as a deduction for the decline in value of the...
Monty Corp. purchased a new machine on October 1, 2019, at a cost of $124,000. The...
Monty Corp. purchased a new machine on October 1, 2019, at a
cost of $124,000. The company estimated that the machine will have
a salvage value of $15,000. The machine is expected to be used for
10,000 working hours during its 4-year life.
Compute the depreciation expense under straight-line method for
2019. (Round answer to 0 decimal places, e.g.
2,125.)
2019
Depreciation expense
$
Compute the depreciation expense under units-of-activity for
2019, assuming machine usage was 1,860 hours. (Round...
Discuss the ATO’s ‘Test Case Litigation Program’ Answer in around 300 words ps: require plagiarism free...
Discuss the ATO’s ‘Test Case Litigation Program’
Answer in around 300 words
ps: require plagiarism free answer
1. Blue Spruce Corp. purchased a new machine on October 1, 2019, at a cost of...
1. Blue Spruce Corp. purchased a new machine on October 1, 2019,
at a cost of $134,000. The company estimated that the machine will
have a salvage value of $20,000. The machine is expected to be used
for 10,000 working hours during its 5-year life.
Compute the depreciation expense under straight-line method for
2019. (Round answer to 0 decimal places, e.g.
2,125.)
2019 Depreciation expense:
2. Yello Bus Lines uses the units-of-activity method in
depreciating its buses. One bus was...
October 1, 2019 Lynbrook Inc. purchased a new machine for one of its stores. The machine's...
October 1, 2019 Lynbrook Inc. purchased a new machine for one of
its stores. The machine's estimated useful life at the time of the
purchase was 20 years, and its residual value was $5,000.
Purchase price of machine $175,000 Freight costs 7,000 Installation
of machine 17,000 Sales taxes 6,000 Cost to repair machine damaged
during installation 1,000
Instructions: A. Compute depreciation expense for the years 2019
through 2021 under each depreciation method listed below: 1.
Straight-line, with fractional years...
Koza Automotive purchased a CNC machine for $20,000 in year 0. The useful life of the...
Koza Automotive purchased a CNC machine for $20,000 in year 0.
The useful life of the machine is 10 years, at the end of which the
machine is estimated to have a salvage value of zero. The machine
generates net annual revenues of $6,000. The annual operating and
maintenance expenses are estimated to be $1,000. If their MARR is
15%, how many years will it take before this machine becomes
profitable?
Alex is a carpenter who purchased a vacant block of land in Sydney on 1 October...
Alex is a carpenter who purchased a vacant block of land in
Sydney on 1 October 1980. On 1 September 1986, Alex built a house
on the land. At the time, the land was valued at $110,000 and the
cost of construction was $100,000. Immediately, after the
construction finished, the property has been rented out. On 1 March
2019, Alex sold the property at auction for $1,400,000. With
reference to relevant legislation/case law determine: (A) Alex’s
net capital gain or...
3. A CNC milling machine was purchased three years ago for $290,000 has a market value...
3. A CNC milling machine was purchased three years ago for
$290,000 has a market value that can be described by the relation
$290,000 -30,000k, where k is the number of years from the time of
purchase. This type of asset has shown that its annual operating
cost is described by the relation $40,000 + 20,000k. The asset’s
salvage value was originally estimated to be $20,000 after a nine
year predicted life. Determine the current values for P,S, and AOC...
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