LEG2601 Assignment 1 Semester 1 2026 (Fully Answered) - Due 13 April 2026

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TAKE YOUR PICK (OPTION A or B)
OPTION A
QUESTION 1

1.1 Book Value of Existing Machine

The machine was purchased for R1,000,000 and depreciates at 30% per annum using
straight-line depreciation.




OPTION B
QUESTION 1
1.1 Calculate the book value of the existing machine.
The book value is the cost of the machine minus accumulated depreciation.
Initial cost of machine: R1,000,000
Depreciation rate: 30% per annum
Depreciation for 3 years:
• Year 1: 30% of R1,000,000 = R300,000
• Year 2: 30% of (R1,000,000 - R300,000) = R210,000
• Year 3: 30% of (R1,000,000 - R300,000 - R210,000) = R147,000
Disclaimer:
The materials provided are intended for educational and informational purposes only. They
Total depreciation over 3 years = R300,000 + R210,000 + R147,000 = R657,000
should not be submitted as original work or used in violation of any academic institution's
policies.Book
The buyer
valueisofsolely
the responsible
machine =for how cost
Initial the materials are used.
- Total depreciation = R1,000,000 - R657,000 =
R343,000