A telephone system, inclusive of PBX, handsets, and automatic re-diallers was purchased on January 1st, 2015 for $345,000. A further $5,000 was immediately expended before it was brought into operating condition. Ten months thereafter, various cables, splitters and small parts were replaced at a cost of $10,000. All these amounts were included in Repairs and Maintenance. D Using the information in the note above, calculate the relevant allowances on this asset for the year. A tabular format is not required. Please show all workings - and clearly state any assumptions made on the lines provided below.
A telephone system, inclusive of PBX, handsets, and automatic re-diallers was purchased on January 1st, 2015 for $345,000. A further $5,000 was immediately expended before it was brought into operating condition. Ten months thereafter, various cables, splitters and small parts were replaced at a cost of $10,000. All these amounts were included in Repairs and Maintenance. D Using the information in the note above, calculate the relevant allowances on this asset for the year. A tabular format is not required. Please show all workings - and clearly state any assumptions made on the lines provided below.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Depreciation Methods
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Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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![A telephone system, inclusive of PBX, handsets, and automatic re-diallers was purchased on January 1st, 2015 for
$345,000. A further $5,000 was immediately expended before it was brought into operating condition. Ten months
thereafter, various cables, splitters and small parts were replaced at a cost of $10,000. All these amounts were included
in Repairs and Maintenance.
D
Using the information in the note above, calculate the relevant allowances on this asset for the year. A tabular format is
not required. Please show all workings - and clearly state any assumptions made on the lines provided
below.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa8edb1ae-a456-4939-9152-e7a523d58601%2Fbd2694b3-13ef-44cc-b40a-bf91ddcbe296%2Fennjnrp_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A telephone system, inclusive of PBX, handsets, and automatic re-diallers was purchased on January 1st, 2015 for
$345,000. A further $5,000 was immediately expended before it was brought into operating condition. Ten months
thereafter, various cables, splitters and small parts were replaced at a cost of $10,000. All these amounts were included
in Repairs and Maintenance.
D
Using the information in the note above, calculate the relevant allowances on this asset for the year. A tabular format is
not required. Please show all workings - and clearly state any assumptions made on the lines provided
below.
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