On 1 July 2020 Tom bought a machine for P15, 500. He depreciates machinery at a rate of 20% per annum on the reducing balance basis. A full year’s depreciation is charged in the year an asset is purchased. His year end is 31 October. a. Calculate the depreciation charge on the machine for the year to 31 October 2022.

On October 12, 2023, Simarov, Inc. purchases a Copyright to a song, written by a person who died on October 12, 1963 for $50,000 cash. Simarov believes they will be able to generate revenue from the Copyright for the remaining useful life. Prepare the journal entry to record the purchase. DR: CR: What is the remaining useful life of the Copyright? How much amortization expense will Simarov record each year? years Prepare the adjusting journal entry to record one year's amortization. DR: CR: What is the Net Book Value of the Copyright on October 1, 2027?

Peter's Records purchases a new desktop computer for $8,900, on the 1st January 2020 The computer is expected to have a useful life of 5 years, and a residual value of $500. Peter applies the Reducing-balance depreciation method to all his computer equipment. Peter applies the formula '2 x Straight-line rate'. Therefore, the depreciation expense Peter would record, for the 2nd Year (1st January 2021 to 31st December 2021) for the computer, would be: Select one: a. $2,136 b. $2,360 c. $3,540 O d. $1,326

On Jan. 1, 2019 Spitfire Airlines buys a new Boeing 737 aircraft for $ 50,000,000.  It is expected to last 15 years and fly 50,000 hours.  At the end of its useful life, Spitfire expects to sell the aircraft for $2,000,000. In 2019 the aircraft flies for 3,800 hours. a.  What is the 2019 depreciation, assuming straight line depreciation is used?  b.  What is the 2019 depreciation, assuming units of production depreciation is used?   c.  Suppose that straight line depreciation is used.  On Jan. 1, 2021, the airline decides that the total useful life will be 20 years (including the years already used).  What is the straight linedepreciation for 2021?

Alexandra purchased a $55,200 automobile during 2021. The business use was 60 percent. What is the allowable depreciation for the current year? (Ignore any possible bonus depreciation.)

Hardev

A company buys a £300 computer in Year 1 and capitalizes the expenditure. Th e computer has a useful life of three years and an expected salvage value of £0, so the annualdepreciation expense using the straight-line method is £100 per year. Compared to expensing the entire £300 immediately, the company’s pretax profit in Year1 is £200 greater.1. Assume that the company continues to buy an identical computer each year at thesame price. If the company uses the same accounting treatment for each of the computers, when does the profit-enhancing eff ect of capitalizing versus expensing end?2. If the company buys another identical computer in Year 4, using the same accounting treatment as the prior years, what is the eff ect on Year 4 profits of capitalizingversus expensing these expenditures?

David Ltd commences operations on 1 July 2020 On the same date, it purchases a  machine at a cost of $1000 000 The machine is expected to have a useful life of 4 years, with benefits being uniform throughout its life. It will have no residual value at the end of 4 years Hence, for accounting purposes the depreciation expense would be $250 000 per year For taxation purposes, the ATO allows the company to depreciate the asset over three years—that is, $200 000 per year The profit before tax of the company for each of the next four years (years ending 30 June) is $600 000, $700 000, $800 000 and $900 000 respectively The tax rate is 30 per cent. Required: 1. Calculate the taxable profit on 30 June 2021,  30 June 2022,  30 June 2023.2. Record the necessary journal entries.

Andrew works as a sales and marketing consultant for Hisense Australia. As part of his work, he purchased a Mercedes van on 1 January 2022 for $60,000. The vehicle has an effective life of 8 years and is used 50% for business purposes. Required: Calculate the depreciation allowable in relation to the vehicle for the year ended 30 June 2023. Use the Diminishing Value Method. (based on australia taxation law)

Your employer just purchased $218,000 of equipment that is classified as five-year MACRS property. The MACRS rates are .2, .32, .192, .1152, .1152, and .0576 for Years 1 to 6, respectively. What will be the book value of this equipment at the end of three years assuming no bonus depreciation is taken?