Gareth, a sales tax registered trader purchased a computer for use in his business. The invoice for thecomputer showed the following costs related to the purchase:$890ComputerAdditional memoryDeliveryInstallation951020Maintenance (one year)251,040182Sales tax (17.5%)Total1,222How much should Gareth capitalise as a non-current asset in relation to the purchase?

Non current assets means those assets which will be use for a longer period of time . It is also…

Gareth, a sales tax registered trader purchased a computer for use in his business. The invoice for the computer showed the following costs related to the purchase: Computer Additional memory Delivery Installation $ 890 95 10 20 Maintenance (one year) 25 1,040 182 Sales tax (17.5%) Total 1,222 How much should Gareth capitalise as a non-current asset in relation to the purchase?

Gareth, a sales tax registered trader purchased a computer for use in his business. The invoice for the computer showed the following costs related to the purchase: Computer Additional memory Delivery Installation $ 890 95 10 20 Maintenance (one year) 25 1,040 182 Sales tax (17.5%) Total 1,222 How much should Gareth capitalise as a non-current asset in relation to the purchase?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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