ALL PARTS ARE THE SAME QUESTION
Phillips Ltd purchased a machine on March for $ and began to use it immediately. The estimated useful life of the
machine is years, and it has an expected residual value of $ at that time. Phillips uses straightline depreciation.
Required:
& Calculate annual depreciation for through assuming that depreciation is calculated to the nearest month using three
accounting conventions:
a Halfyear convention
b Fullfirstyear convention
c Finalyear convention Calculate the gain or loss on disposal assuming that the asset is unexpectedly sold for $ at the end of using net book
value from requirement and then from the three alternatives in requirement
Calculate the gain or loss on disposal assuming that the asset is unexpectedly sold for $ at the end of X using net book value from requirement and then from the three alternatives in requirement
