I need answer Question:Mr. R bought a machine for Rs 25,000 on which he spent Rs 5,000for carriage and freight; Rs 1,000 for brokerage of the middleman;Rs 3,500 for installation and Rs 500 for an iron pad. The machineis depreciated @ 10% every year on a written down basis. Afterthree years the machine was sold to Mr. B for Rs 30,500 and Rs500 was paid as commission to the broker. Find out the profit orloss on the sale of the machine.

Explanation of Written Down Value Method: Written down value method (WDV) is a depreciation…

Answered: Question: Mr. R bought a machine for Rs…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization

Section: Chapter Questions

Problem 58P

See similar textbooks

Similar questions

Give me answer this question
Mr. A bought a machine for Rs 25,000 on which he spent Rs 5,000 for carriage and freight; Rs 1,000 for brokerage of the middleman; Rs 3,500 for installation and Rs 500 for an iron pad. The machine is depreciated @ 10% every year on a written down basis. After three years the machine was sold to Mr. B for Rs 30,500 and Rs 500 was paid as commission to the broker. Find out the profit or loss on the sale of the machine.
get answer please
solve this one and provide answer
None
Bruno buys two motor vans costing RM41,000 in total. They are depreciated on the reducing-balance basis at the rate of 40% per annum. Which of the following statements is true? A. The NBV of the vans after two years will be RM14,760 and the depreciation charge for year 2 will be RM9,840 B. The NBV of the vans after one year will be RM14,760 and the depreciation charge for year 2 will be RM16,400. C. The NBV of the vans after two years will be RM24,600 and the depreciation charge for year 2 will be RM9,840 D. The NBV of the vans after one year will be RM24,600 and the depreciation charge for year 2 will be RM16,400.
Vijay
VC purchased a machine for use in operations at a quoted price of $35,120. Full payment was cash of $8,000, plus a two-year non-interest-bearing note for $27,121. The market rate of interest for this note is 8 percent. VC should record the cost of the machine as (rounded to the nearest dollar): a. $32,950 b. $31,250 c. $23,250 d. $35,000 Please answer explaining in detail step by step without table and graph thankyou
2. Rayif wants to sell a jeep which has been used for eight years. The vehicle costs him RM62,000 when it was purchased brand new. The jeep is estimated to have a scrap value of RM8,000 after 15 years. He asked two agents to sell his vehicle. Agent A uses the sum- of-year digits method to calculate depreciation while agent B uses the declining balance method. a) Construct the depreciation schedules for the first eight years. b) Which agent should Rayif choose to sell his Jeep?
Lotus purchases a new machine for $20,000, and spends $2,000 on sales taxes, $500 for delivery, and $300 for installation of the new machine. What is the amount that will be capitalized on the company’s balance sheet? $22,500 $20,000 $22,000 $22,800
A business purchased a motor car on 1 July 20X3 for $20,000. It is to be depreciated at 20 per cent per year on the straight line basis, assuming a residual value at the end of five years of $4,000, with a proportionate depreciation charge in the years of purchase and disposal. The $20,000 cost was correctly entered in the cash book but posted to the debit of the motor vehicles repairs account. How will the business profit for the year ended 31 December 20X3 be affected by the error?
Q4. Metropol Ltd. acquired a machinery for Rs. 5,00,000 on 1St April 2009. Rs. 40,000 were given as wages for its installation. A similar machine was available in the market at Rs. 4,00,000. Depreciation was to be charged at 20% p.a. on SLM basis. On 1st April, 2011 a modification was made to machinery to improve its technical efficiency at a cost of Rs. 50,000 which it was considered would extend the useful life by two years. At the same time, the machine was painted at cost of Rs. 10,000 so that it looks new. Routine machine maintenance during the year ending 31St March 2012 is Rs.7,500. Show for the year ending 31St March 2012: i. Machine Account ii. Provision for Depreciation iii. Relevant portions of P&L Account showing revenue charge relating to machine account. iv. Working note should form part of Solution

SEE MORE QUESTIONS

Recommended textbooks for you

CONCEPTS IN FED.TAX., 2020-W/ACCESS

Accounting

ISBN:

9780357110362

Author:

Murphy

Publisher:

CENGAGE L