60.1K
Verified Solution
Link Copied!
A limited has purchases Machine at 1 January 2021 with following transactions.
List price Rs 500,000
Trade discount Rs. 30,000
Early settlement discount / cash discount = Rs. 20,000
Transportation cost to bring machine in premises Rs. 10,000
Installation charges Rs. 5,000
During transportation, transportation vehicle got an accident and repair on vehicle Rs. 4,000.
During Installation, there is a damage of machine and repair cost Rs. 2,000.
Trail running cost / start up cost Rs. 10,000.
Useful life 5 Years
Salvage value Rs. 20,000
Required: Calculate
Initial cost to be capitalized.
Depreciation expense under:
Straight line method
Reducing balance method
Sum of year digit method
At 30 June 2023, machine disposed at a value of Rs. 145,000. Calculate gain or loss on disposal.
Answer & Explanation
Solved by verified expert
