The industrial enterprise "HUANG S.A." purchased a sorting and packaging machine from a foreign company on 1/4/2017 at a cost of €500,000. The useful life of the machine was estimated by the Management at ten (10) years, while the residual value was estimated at zero. For the transportation of the machine from abroad to the company's factory, the amount of €20,000 was paid on 15/4/2017. As the insurance coverage of the machine during transportation was the responsibility of the selling company, HUANG S.A. proceeded to insure the machine from 16/4/2017 to 15/4/2018, paying the amount of €1,200. The delivery took place on 15/4/2017. As adequate ventilation of the multifunction device is essential for its proper operation, the company fitted an air duct on the multifunction device. The cost of the air duct amounted to €2,000 and was paid on 20/4/2017. On 25/4/2017, an external electrician was paid €5,000 for the electrical connection of the device. The company also paid €5,000 to an external engineer for the installation-assembly and test operation of the multifunction device. On 19/5/2017, the company paid €1,500 to the company “REMOVER S.A.” for the removal of packaging materials that were used exclusively by the previous older technology device used by the company. These packaging materials cannot be used by the new device. The multifunction machine was put into operation on 1/6/2017. On 1/9/2017, the first maintenance costing €200 was carried out. On 1/10/2020, the company replaced the multifunction machine's packaging center with a new technology packaging center that allows packaging with recyclable materials and is expected to lead to a 20% increase in the produced quantity and a 10% reduction in packaging costs. The new packaging center cost €80,000. On 1/10/2020, the company, reassessing the new data and available information on the expected benefits, reassessed the remaining useful life of the multifunction machine at fourteen (14) years, while maintaining its estimate of zero residual value. Two years later (30/9/2022) the company sold the multifunction device for €300,000. The amount was deposited into its current account on the same day. All company transactions are carried out through a current account.
The industrial enterprise "HUANG S.A." purchased a sorting and packaging machine from a foreign company on 1/4/2017 at a cost of €500,000. The useful life of the machine was estimated by the Management at ten (10) years, while the residual value was estimated at zero.
For the transportation of the machine from abroad to the company's factory, the amount of €20,000 was paid on 15/4/2017. As the insurance coverage of the machine during transportation was the responsibility of the selling company, HUANG S.A. proceeded to insure the machine from 16/4/2017 to 15/4/2018, paying the amount of €1,200. The delivery took place on 15/4/2017.
As adequate ventilation of the multifunction device is essential for its proper operation, the company fitted an air duct on the multifunction device. The cost of the air duct amounted to €2,000 and was paid on 20/4/2017. On 25/4/2017, an external electrician was paid €5,000 for the electrical connection of the device.
The company also paid €5,000 to an external engineer for the installation-assembly and test operation of the multifunction device.
On 19/5/2017, the company paid €1,500 to the company “REMOVER S.A.” for the removal of packaging materials that were used exclusively by the previous older technology device used by the company. These packaging materials cannot be used by the new device.
The multifunction machine was put into operation on 1/6/2017. On 1/9/2017, the first maintenance costing €200 was carried out.
On 1/10/2020, the company replaced the multifunction machine's packaging center with a new technology packaging center that allows packaging with recyclable materials and is expected to lead to a 20% increase in the produced quantity and a 10% reduction in packaging costs. The new packaging center cost €80,000.
On 1/10/2020, the company, reassessing the new data and available information on the expected benefits, reassessed the remaining useful life of the multifunction machine at fourteen (14) years, while maintaining its estimate of zero residual value.
Two years later (30/9/2022) the company sold the multifunction device for €300,000. The amount was deposited into its current account on the same day.
All company transactions are carried out through a current account.
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