Consider the following scenario:- our organisation has purchased a new photocopier at a cost of...
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Accounting
Consider the following scenario:-
our organisation has purchased a new photocopier at a cost of $17,000. The purchase was made in July so there is no need to calculate depreciation for part of the first year. The copier will be outdated and written off after five years at a book value of zero.
Describe how to use the diminishing value method and the prime cost method, and detail the cost each year to be allocated for reporting purposes and show the book value during each year.
Show your results in a table with comparisons between the two methods as follows:-
Prime cost method:-
Open Written Down Value
Days Held
Days in Year
Depreciation
Closed Written Down Value
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Diminishing Value Method:-
Open Written Down Value
Days Held
Days in Year
Depreciation
Closed Written Down Value
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Please consider it is in Australian Taxation Environment, and please type up your answer!!
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