Question on calculation

[nacggk]

6 July 2018 Q

Does anyone know how to calculate this with explanations?


Monow Manufacturing provided the following information at 1 June 2017.

Machinery – Cost $18 100 – Accumulated depreciation $8 350

On 1 January 2018 a machine was sold for $3 000 cash. The machine was purchased on 1 September 2015 for $6 600 On 1 March 2018 a new machine costing $9 900 was purchased. Depreciation is charged for each month of ownership at 20% per annum on a straight line basis.

4a Calculate for the machine disposed of:
(i) the total amount of depreciation charged. - Model answer is $3080
(ii) the profit or loss on disposal - Model answer is $520
b Calculate the total depreciation charge on the machinery for the year ended 31 May 2018. Model answer is $3565

 

[kirby]

Yes.

 

[nacggk]

How to calculate the above questions? Can anyone explain with workings?

 

[kirby]

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