On 1st October 2020, the company purchased a new equipment costing RM500000 from Emart BHD....
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Accounting
On 1st October 2020, the company purchased a new equipment costing RM500000 from Emart BHD. The company need to provide dismantling cost of RM100000 to be paid at the end of useful life of the equipment. The cost of capital was 8%. The company adopt straight line method for depreciation of all equipment owned by the company. The useful life of the equipment was 10 years.
Given the accounting period of the company is from 1st of April 2020 to 31st of March 2021. Provide the accounting treatment for the information above.
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