FAC 1502 ASSIGNMENT 2

FAC1502 ASSIGNMENT 2 UNIQUE NUMBER ANOE TUTORIALS JHB,KEMPTON PARK & PTA DURBAN SEMINAR FAC1502 REVISION 27 APRIL 2018 KINGMEAD CRICKET STADIUM(CONFERENCE ROOM) TO BOOK CONTACT .(call or ) QUESTION 1 To calculate profit upon a disposal of a PPE asset one has to calculate accumulated depreciation. Selling price - Accumulated depreciation = loss(-)cr profit (+) dr One needs to construct a timeline for the disposal. Cost of the vehicle 21600 Total accumulated depreciation (the years involved) (14040) 1 july 2013-june 2014= 612 × 20%×21600= 2160 1 july 2014-30 june 2015 20%×21600= 4320 1 july 2015-30 june 2016 20%×21600= 4320 1 july 2016-31 march 2017 912×20%×21600= 3240 Carrying amount(add all the depreciations) 7560 Profit = selling price -book value Selling Price 5000 Book value 7560 loss on the sale of an asset -2560 OPTION 5 QUESTION2 WHENEVER THERE IS A MOVEMENT OF ASSETS DURING THE YEAR DEPRECIATION HAS TO BE CALCULATED SEPERATELY FOR EACH ASSET. Total depreciation 17433 Total depreciation for machinery(old)57600×25%= 14400 depreciation of the new 72800×212×25%= 3033 OPTION 2 This study source was downloaded by from CourseH on :30:43 GMT -05:00 This study resource was shared via CourseH QUESTION 3 Carrying amount of machinery Carrying amount @ the beg less depreciation for the year (22500) OPTION 2 QUESTION 4 Settlement discount granted