Question 3 If the boiler was sold at the end of year 21 for R2.5 million, determine the gain(loss) on disposal and the r

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Question 3 If The Boiler Was Sold At The End Of Year 21 For R2 5 Million Determine The Gain Loss On Disposal And The R 1 (281.58 KiB) Viewed 42 times

Question 3 If The Boiler Was Sold At The End Of Year 21 For R2 5 Million Determine The Gain Loss On Disposal And The R 2 (145.01 KiB) Viewed 42 times

Question 3 If the boiler was sold at the end of year 21 for R2.5 million, determine the gain(loss) on disposal and the resultant tax liability (or credit) if the tax rate is 27% and when the following depreciation methods are used: (Hint: You may use information calculated in Question1) 3.1. Straight-line method 3.2. 200% dedining balance method and (2) 3.3. 150%dedining balance method (2) (2)
Answer 1 of 1 For straight line depreciation, Annual depreciation = (Initial book value-salvage value)/useful life For 200% depreciation, Annual depreciation = 2(asset cost - accumulated depreciation)/useful life For 150% depreciation, Annual depreciation = 1.5(asset cost-accumulated depreciation)/useful life = Year the year 1 2 3 4 > 7 8 9 10 11 12 13 14 Straight line Depreciation 200% Depreciation 150% Depreciation Book Value Book Value at Bouk value at at beginning Depreciation Accumulated Depreciation in Buok Value at Bouk Value at Autunulated Depreciation Book Value at end of year beginning of yea Depreciation of year end of the year beginning of year Depreciation in the year end of the year 7.500000 21000 7270.000 7500000 0 500000 7000000 7500000 0 375000 7125000 7270000 230000 2040000 7000000 500000 166667 6533333 7125000 375000 355250 5768750 7040000 230000 6810000 6533333 966667 435556 6097776 6758750 731250 335438 6430013 6310000 290000 6590000 6097778 1402222 406519 5691259 6430812 106965 321510 6108797 0590000 230000 0350000 5691259 1908741 3/9417 5311542 b100/97 1391203 305440 5902257 0330000 230000 6120000 5311542 2188238 354123 4957719 5903237 1090041 290100 3512189 6120000 230000 5890000 4957719 2542281 330315 4627205 5513189 1986811 279059 5237330 5890000 230000 5600000 4627206 2872795 308480 4318724 5237530 2262470 261876 4973653 SGBOCCO 230000 5430000 4316724 3181276 287915 4030RON 4975603 2524347 243713 4726871 5430000 23000 5200000 40 3469191 768721 37627 4726ATI 2773129 236944 4490527 5200000 230000 4970000 3752069 3737911 25000 3511201 4490527 2009473 22576 4266001 4970000 230000 470000 3511283 3988717 234005 3277197 4255001 3233999 2133.00 4052701 4740000 230000 4510000 3277197 4222800 210400 3058717 4052701 3447299 202635 3850066 4510000 230000 4290000 3058717 4641283 200914 2054900 3850000 3649934 192500 3557562 4250000 230000 4050000 2854904 4645197 190320 2664452 3b5/502 3142438 152/ 34/4084 4050000 230000 3820000 2604433 4939517 177032 248095 3474004 4025310 173714 3300950 3920000 230000 3590000 2486801 5013149 165790 2321052 3390950 4199050 153040 3133903 3390CCO 230000 3350000 2321061 5178939 154737 2100323 3133SOR 4364037 153793 2979107 3330000 230000 3130000 2166323 5333677 144422 2021902 2979107 4520893 145955 2830152 3130000 230000 2900000 2021902 5478046 134793 1887108 2030152 4669R43 141508 2564644 2900000 230000 2670000 1RR100 5617892 125007 1761301 269644 4811356 134432 2.554912 2570000 230000 2440000 1761301 5738699 117120 1613881 2554712 1945788 127711 226502 2940000 230000 2210000 1613881 5855119 109592 1534289 2426502 5073498 121325 2306177 2210000 230000 1930000 1524289 5955711 102285 1432003 205177 5194823 115259 2189910 1990000 290000 1750000 1432000 5057997 96467 1336536 2139918 5310082 109450 2080422 1/30000 230000 1520000 1336920 6103404 89202 1241434 2090422 5419578 104023 19/0401 1520000 230000 1230000 1247414 0252000 32102 1154271 1970401 5523599 58820 1877581 129000C 230000 1000CCO 1154271 6333729 77618 1086553 1877381 5622419 92879 1782702 1050CCO 230000 820000 1035653 6413347 72444 1014210 1782702 5716238 39185 1094517 830000 230000 GOC000 1014910 6435790 414219 G00000 1694517 5805432 1044517 600000 15 10 17 18 19 20 21 22 23 24 25 26 27 28 29 30