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Question: question 5 perates a retail shoe business you are required...

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QUESTION 5 perates a retail shoe business. You are required to look at the following non-currents assets for the business for the year ended 30 June 2015 PARTA Units of Use Method A motor vehicle was purchased by the business on 30 September 2013 for $64,900 (GST inclusive). Delivery and other associated costs for the vehicle were a further $1,100 (GST inclusive). The vehicle had an expected residual of $11,000 (GST inclusive) and was to be driven for a total of 100,000 kilometres before it was to be traded in Mileage for 2014-20,000 kilometres, 2015-45,000 kilometres Required (i) Calculate the depreciation on the motor vehicle for 2015 (ii) What is the balance in the Accumulated Depreciation-Motor Vehicle account at 30 June 2015? PART B Straight Line Method A new computer was purchased from Nat Alma Co. on 1 March 2015 for $5,500 (GST inclusive). It was expected to be used for three years at which time its estimated residual value would be $550 (GST inclusive). The straight line (fixed instalment) method was used to calculate depreciation. Required: Prepare general journal entries to record: (i) The purchase of the new computer. (ii) Depreciation for the year ended 30 June 2015. PART C Reducing Balance Method On 30 September 2012 Bold Reason. purchased a machine for $110,000 (GST inclusive). This machine was expected to be used for four years and have an estimated residual value of $11,000 (GST inclusive). The machine is depreciated at 40% pa. using the reducing balance (diminishing value) method. Required: (i) Depreciation schedule for the asset from the date of purchase up to 30 June 2015. (ii) The machine was sold for cash on 31 December 2015 for $19,250 (GST inclusive). Prepare the general journal entries for the sale of the machine.

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