Question 4 should be rewritten because it's confusing
D
David·
I agree. There's nothing in the question that indicates Triage Co hasn't already correctly accounted for the depreciation on the new equipment, the student is just supposed to guess that fact.
B
Bernard·
ohk
C
Clayton Camilleri·
Have the same question as StefanosG
StefanosG says
January 22, 2021 at 4:55 pm
Why do we depreciate on 9 years estimated life while only 6 months have past since the purchase. Shouldn’t it be 9.5 years ?
Thanks
F
Farid·
Thanks in advance for this benefitable form for ACCA exams. I would like that know when FR (F7) practise test was uploud in site? And, are relevance this questions for December, 2020 session?
U
Unaswi·
Question 3,why isnt depreciation accounted for from January 20x3 to June 20x3?Why doies the depreciation start in July 20x3?Shpukd we be depreciating the machine from the time it was purchased?
G
Gc·
Hi Sir,
The new machine bought on 30 september 20x5, the depreciatio start from Sep 20x5 to 31 mar 20x6, which is 7 month in total.
But why the deprecation only counted for half year instead of 7 month?
Z
ziyad saidu·
no geo, depreciation starts only from October 1 20x5 and that makes it to half year.
if the same was purchased on 1 of September instead of 30 sept. then your argument is correct. thats how it works.
K
kitty·
you might count september in your calculation as well sep is already end you suppose to calculate from 1 oct. to march . its 6 months.
B
basketfreak15·
Hello Sir,
First question is about having a legal obligation. Why is the answer to providing for the expense each year is incorrect?
Best,
Jakob
E
elmansory·
I think no 4 answer is wrong
The correct is
(72100-10000) =62100
(28100-750)= 27350
62100-27350= 34750
34750*.15= 5212.5
(10000*.15)/6= 750
The depreciation is 5212.5+750= 5962.5
M
MikeLittleTutor·
That $750 shown in the second line of your post presumably relates to the half year 15% on the new $10,000 purchase
HOWEVER, that accumulated depreciation figure of $28,100 is shown in the trial balance BEFORE the year's depreciation charge is accounted for
So that $750 is NOT already included within the $28,100
The calculation is therefore $10,000 @ 15% for half a year = $750
and 15% of ($62,100 - $28,100) is 15% x $34,000 = $5,100
So the depreciation charge for the year is $750 + $5,100 = $5,850
OK?
M
Mitho007·
thats what i thought at first but only to realise the depreciation of 750 wasnt included in the acc depreciation figure.
S
sethwallas1·
first depreciation from july to december i think it is not relevant to the question.
M
Marcia·
Hello Teacher,
Would like to ask you, why on the Zeus Co exercise the depreciation starts on 30 June to dezember not january to december when the machine was bought?
Thank you.
M
MikeLittleTutor·
The financial year end is June so the period that we are looking at is 1 July X3 to 30 June X4
6 months depreciation from 1 July X3 to 31 December X3 is 1/2 * 10% * $160,000 AND
6 months depreciation from 1 January X4 to 30 June X4 is 1/2 * 1/9 * $ 162,000 (1/9 because the revaluation from $144,000 to $162,000 on 1 January X4 did NOT change the estimated useful life)
OK?
R
rebescosco·
Okay sir, thank you so much sir
S
Stefanos·
Why do we depreciate on 9 years estimated life while only 6 months have past since the purchase. Shouldn't it be 9.5 years ?
N
newfreshman·
Sir
I think the date should be on 1 July 20X3 at the question, not 1 Jan 20x3, but he told the purchasing has been made on Jan 20X3,
StefanosG says
January 22, 2021 at 4:55 pm
Why do we depreciate on 9 years estimated life while only 6 months have past since the purchase. Shouldn’t it be 9.5 years ?
Thanks
The new machine bought on 30 september 20x5, the depreciatio start from Sep 20x5 to 31 mar 20x6, which is 7 month in total.
But why the deprecation only counted for half year instead of 7 month?
if the same was purchased on 1 of September instead of 30 sept. then your argument is correct. thats how it works.
First question is about having a legal obligation. Why is the answer to providing for the expense each year is incorrect?
Best,
Jakob
The correct is
(72100-10000) =62100
(28100-750)= 27350
62100-27350= 34750
34750*.15= 5212.5
(10000*.15)/6= 750
The depreciation is 5212.5+750= 5962.5
HOWEVER, that accumulated depreciation figure of $28,100 is shown in the trial balance BEFORE the year's depreciation charge is accounted for
So that $750 is NOT already included within the $28,100
The calculation is therefore $10,000 @ 15% for half a year = $750
and 15% of ($62,100 - $28,100) is 15% x $34,000 = $5,100
So the depreciation charge for the year is $750 + $5,100 = $5,850
OK?
Would like to ask you, why on the Zeus Co exercise the depreciation starts on 30 June to dezember not january to december when the machine was bought?
Thank you.
6 months depreciation from 1 July X3 to 31 December X3 is 1/2 * 10% * $160,000 AND
6 months depreciation from 1 January X4 to 30 June X4 is 1/2 * 1/9 * $ 162,000 (1/9 because the revaluation from $144,000 to $162,000 on 1 January X4 did NOT change the estimated useful life)
OK?
I think the date should be on 1 July 20X3 at the question, not 1 Jan 20x3, but he told the purchasing has been made on Jan 20X3,