Angela purchased a machine for her business on 1 March 20X1 for $12,000. She incurred additional...
Angela purchased a machine for her business on 1 March 20X1 for $12,000. She incurred additional costs for transportation of $1,300 and installation of $2,000. Shortly after she started to use the machine, it broke down and the repairs of the machine cost $600. Angela charges depreciation at 10% per annum on straight line basis with a full year’s charge in the year of acquisition.
Required:
Calculate the correct net book value of the machine at the year-end date of 31 December 20X1.
(10 marks)
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