Depreciation Extra Exercises QUESTION ONE Fruitful Ltd bought a fruit sorting machine for $63,500 on 1 February 2005. T

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Depreciation
Extra Exercises
QUESTION ONE
Fruitful Ltd bought a fruit sorting machine for $63,500 on 1
February 2005. The company is using diminishing value
depreciation at 25%.
Required:
Show the relevant Balance Sheet extract for the year ended 30
September 2007 (use whole dollars only).
QUESTION TWO
Blueberry Ltd sells gourmet pies. At 30 September 2006 the
Balance Sheet revealed the following:
Equipment
32 000
Accumulated Depreciation
14 000

18 000
Fixtures and Fittings
3,200
Accumulated Depreciation
640

2,560
The firms policy is to depreciate equipment at 25% diminishing
value.
The fixtures and fittings are depreciated over 10 year’s
straight line with no residual value.
Required:
Show the relevant Income Statement and Balance Sheet extracts for
the year ended 30 September 2007.