Question

View Policies Current Attempti Proges On January 2, 2015 Bonita Industries acquired euiment to be used in its manufacturing operations. The equipment has an estimated useful life of 10 years and an estimated salvage value of $46300. The depreciation applicable to this equipment was $213500 for 2018, computed under the sum of the years digits method. What was the quisition cost of the equipment $1773000 $1677500 $1653800 $1631200

Answer 1

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1. Purchased equipment on Jon 2nd, 205 cost ? let us asume cost = x Equipment useful life = 104s Schuace vale - 46,3008 Depreciation for the yoou 2018 = 2, 6,500 formula for calculating depreciation for the year 2018 „) (x – 46,200) * 5 3 2,13,500. Since it was give depeclation was calculated based on sm of the yeals digits method . for the 4th yeah i.e, for year 2018 I is to be taken SS dep for 2018 (X- 16,300)x 1 = 2,13,500 72 - 3,24,100 1,19,42,500 70 2 1, 14, 18, 400 A cost of 22 16,31,200 machine perchased on ind son, 2015 : 1631,200 plant D 2) Callying cost a book value = 5,78,00 Recoverable future cash flow 613,000. for determining the impairment loss - subtract the recoverable amant . from the collying cost (or) book dhe impairment lors G13,000 - 5,78,00 - 38000 this B not an imporment lors it is o prota so ortion D is correct Anst o