Labour 1 356 800 Material 2 400 000 total 3 756 800 all machinery were purchased on 1 july 2021. Land and buildings consist of factory buildings and offices in constantia park,erf 300 owner occupied.the buildings was completed on 1 april 2023 and brought into use the same date and is depreciated over its estimated useful life of 20 years What original cost of machinery
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'An entity acquired a machine and incurred the following costs: Cash paid for machine; including VAT of 96,000 Cost of transporting machine Cost of installation Cost of testing machine Cost of safety rails and platform surrounding machine Cost of water device to keep machine cool Cost of adjustment to machine to make it operate more efficiently Cost of repairing damage during installation Cost of pare parts to cover breakdowns Estimated dismantling cost to be incurred as required by contract Insurance cost for the current year Cost of training personnel who will use the machine 896,000 30,000 50,000 40,000 60,000 80,000 75,000 45,000 155,000 65,000 15,000 25,000 What total amount should be capitalized as cost of the machine?'
Aya Bianca I.
On 1st April 2012, Sonu Ltd. purchased machinery for Rs.3,90,000 on which they spent Rs.5,000 for carriage, Rs.2,000 for brokerage of the middleman, Rs.2,500 for installation, and Rs.500 for an iron pad. On 1st November 2013, they purchased another machinery for Rs.1,00,000 and immediately spent Rs.20,000 on its overhauling. On 30th September 2014, the machinery purchased in 2012 was sold at a loss of Rs.1,27,800. The company charges depreciation at a rate of 10% per annum on the written down value basis. Accounts are closed on 31st March every year.
Dominador T.
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