Broadway Limited (“Broadway”) purchased a piece of equipment on 1 February 2022 and had it fully set-up and operational on that date. The equipment was purchased for $160,000. In addition to the purchase price, Braodway spent $20,000 to transport the equipment on site and $30,000 of engineering fees to set-up the equipment. It had an estimated useful life of 10 years and an estimated residual value of $30,000. Each year $3,000 is spent on repairs and maintenance. On 1 July 2024, the equipment was sold for $82,500 cash. Broadway’s financial year end balance date is 30 June (ignore GST).
Broadway Limited (“Broadway”) purchased a piece of equipment on 1 February 2022 and had it fully set-up and operational on that date. The equipment was purchased for $160,000. In addition to the purchase price, Braodway spent $20,000 to transport the equipment on site and $30,000 of engineering fees to set-up the equipment. It had an estimated useful life of 10 years and an estimated residual value of $30,000. Each year $3,000 is spent on repairs and maintenance. On 1 July 2024, the equipment was sold for $82,500 cash. Broadway’s financial year end balance date is 30 June (ignore GST).
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