EXERCISE/TUTORIAL12. 1 A 2 Rubicon Limited purchased machinery on 1 January 20.1 at a cost of R70 000. It has an expected useful life of ten (10) years with no residual value. REQUIRED 1. Calculate the Depreciation on machinery for 20.1 and 20.2 if: a. The straight-line method is used. b. The diminishing amount method is used (rate 20%). c. Sum-of-the-years-digit method is used. 2. Discuss the effect of a change in the method of depreciation from the straight- line method in 20.1 to the diminishing amount method in 20.2.
EXERCISE/TUTORIAL12. 1 A 2 Rubicon Limited purchased machinery on 1 January 20.1 at a cost of R70 000. It has an expected useful life of ten (10) years with no residual value. REQUIRED 1. Calculate the Depreciation on machinery for 20.1 and 20.2 if: a. The straight-line method is used. b. The diminishing amount method is used (rate 20%). c. Sum-of-the-years-digit method is used. 2. Discuss the effect of a change in the method of depreciation from the straight- line method in 20.1 to the diminishing amount method in 20.2.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![EXERCISE/TUTORIAL12. 1 A
2
Rubicon Limited purchased machinery on 1 January 20.1 at a cost of R70 000. It
has an expected useful life of ten (10) years with no residual value.
REQUIRED
1. Calculate the Depreciation on machinery for 20.1 and 20.2 if:
a. The straight-line method is used.
b. The diminishing amount method is used (rate 20%).
c. Sum-of-the-years-digit method is used.
2. Discuss the effect of a change in the method of depreciation from the straight-
line method in 20.1 to the diminishing amount method in 20.2.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb07c9318-891b-435c-abdb-f7854a28ed5e%2Fcdaf0493-4881-457d-a5ec-5e5d09e5c246%2Fl6flq3e_processed.jpeg&w=3840&q=75)
Transcribed Image Text:EXERCISE/TUTORIAL12. 1 A
2
Rubicon Limited purchased machinery on 1 January 20.1 at a cost of R70 000. It
has an expected useful life of ten (10) years with no residual value.
REQUIRED
1. Calculate the Depreciation on machinery for 20.1 and 20.2 if:
a. The straight-line method is used.
b. The diminishing amount method is used (rate 20%).
c. Sum-of-the-years-digit method is used.
2. Discuss the effect of a change in the method of depreciation from the straight-
line method in 20.1 to the diminishing amount method in 20.2.
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